Quotes from Barclays Capital:- We believe that the discussion of the Banxico's board clarifies the expected path of monetary policy for 2015. In the absence of further shocks, inflation should converge to target by mid-2015. If that is not the case, Banxico should consider increasing the reference rate. – This also rules out a pre-emptive hike in Q1 15 as the board acknowledges that the MXN reflects global macroeconomic developments and the pass-through should be contained. – We believe that core inflation will remain well behaved in 2015, leaving enough room for headline inflation to converge to target, so we stick to our view that Banxico will start hiking in October 2015, when there is clear evidence that the output gap is closing and some wage pressures should materialize.
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