Mexican data surprisingly good
In Mexico, the flow of recent economic data continues to point to an economy that is performing surprisingly well under the yoke of the historically high interest rates imposed by the Bank of Mexico (Banxico) to curb inflation.
Although the GDP growth rate in Mexico was lower on a yearly basis in Q1 it rose 0.2% quarter-on-quarter; April’s Manufacturing PMI remained in expansive territory; Business Confidence in April edged lower but not by much, and Gross Fixed Investment in February beat expectations.
Additionally, in a recent poll, a majority of private analysts expected inflation to rise to 4.20% in 2024, which was up from the March estimate of 4.10%, revealed Banxico.
The data points to Banxico likely keeping interest rates at their elevated 11.0% for now, which supports the Peso since it boosts foreign capital inflows.
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