Risk toward higher rates

The overnight interest rate in Mexico currently stands at 7.25 percent. The central bank held rates steady at its latest meeting in late September, despite some expectations of a hike.

Rising inflation pressures suggest a rate increase could occur later this year. August headline CPI data came in at 4.03 percent. The central bank is currently maintaining a tightening bias, as inflation is a smidgen above the upper end of its inflation target at 4.0 percent.