Banxico Preview: A lot going on...but not in monetary policy - Rabobank

"We fully expect Banxico to leave the policy rate unchanged at 7% on Thursday 28th September. This will mark the third consecutive ‘no-change’ decision," note Rabobank analysts.

Key quotes:

"The front-end of the curve points to more than a 60% chance of a cut by year-end but we expect Banxico to remain on hold after the Presidential elections in Q3."

"USD/MXN is currently sitting at the same level it stood at before the previous meeting on August 10th."

"In our previous Banxico Preview we outlined our view that attractive carry would continue to provide support for MXN while the main risks going forward remain NAFTA negotiations and the start of the campaign season for the July 1st Presidential elections. We remain of this view."