2023/10/30

Market Review: The FOMC will hold rates steady and maintain its «higher for longer» stance

  • Market attention this week will be focused on the FOMC monetary policy decision. After the resilient and stronger-than-expected pace of economic activity in the third quarter, the “higher-for-longer” rhetoric remains in place, while the probability of an additional Fed hike is fading. 
  • Regarding the MXN, the USD determined the moves for most EM currencies last week, but the Mexican peso fared worse than its LatAm counterparts. 
  • October’s bi-weekly inflation came in surprisingly low at 0.24% FoF, below market consensus (0.37% FoF) and our forecast (0.31% FoF), moderating in annual terms to 4.27% YoY. Core inflation, however, was higher than expected at 0.24% FoF.
  • The INEGI will publish its advance GDP estimate for 3Q23 on Tuesday. Monthly data shows that the economy remains relatively strong, with a YtD growth rate of 3.5% YoY on average
  • 3Q23 earnings: On GAP, Liverpool, Volaris, Viva, Alsea, Arca Continental, Grupo Bimbo and Femsa. 

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