Mexico's central bank is due to meet tonight and is expected to leave interest rates unchanged after the Mexican peso surged, which has eased inflationary pressures and weak economic data.
Today's decision will be the first since the presidential election last month, and interest rates stabilizing currently at a 9-year high of 7.75%.
The Mexican peso has risen about 12% since mid-June before the landslide victory of left-wing president André Manuel Lopez on July 1. Analysts at Nomura Bank said the peso gains were an important factor in containing upside risks in inflation outlook, making the bank likely to keep interest rates unchanged.
The data showed this week that the Mexican economy slowed slightly in the second quarter of 2018, bolstering expectations of steady borrowing costs. The peso had been hit earlier this year by the rising dollar and concerns about the success of the talks to renegotiate the NAFTA.
Talks resumed last week between the United States and Mexico, helping the peso but uncertainty about the negotiations could increase currency volatility.
