# Mexico: Lower growth to pressure ratings but prudent Banxico should support peso | ING THINK

> ING cut its 2019 Mexico GDP growth forecast to 0.7% and warned of a sharply higher risk of technical recession. It expects Banxico to cut rates at its 15 August meeting and sees USD/MXN trading in a 19.00 to 19.50 range. The note also flags risk that state oil company PEMEX could lose investment-grade status.

- Date: 2019-07-22 · published 2019-07-22T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/58325-mexico-lower-growth-to-pressure-ratings-but-prudent-banxico-should-support-peso
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Weaker growth and a possible Banxico cut would tend to soften the peso over the near term, which lifts the cost of imported feed for Mexican buyers. A PEMEX downgrade could also raise borrowing costs for the sovereign and the company.

## Read by commodity

- USDMXN: neutral

## Sources

- think.ing.com: https://think.ing.com/articles/mexico-lower-economic-growth-to-pressure-ratings-but-prudent-banxico-should-support-mxn/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.