Banxico likely to stand pat until Q1 16

Mexico central bank Banxico's over night rate is at 3.0% currently. Today the central bank has it monetary policy meeting, in which the bank is expected to rise its rate by 25bp by the market consensus, while some market participants expect it to stand pat.

A faster pace of hiking rates is expected from the bank in medium term.

"We expect Banxico to start tightening in Q1 when inflation returns to the target level and further signs of growth acceleration are visible", says Societe Generale in a research note.