Mexico's central bank is expected to hold borrowing costs steady on Thursday but signal that it is ready to follow the U.S. Federal Reserve with an interest rate hike to prop up a slumping peso.
All 24 analysts polled by Reuters expect Banco de Mexico to hold its key rate at 3.0 percent on July 30, thanks to tame inflation and despite a dramatic tumble in the peso to a new record low this month.
But fears of further peso volatility and investor outflows mean analysts are now forecasting a 25 basis point hike on Sept. 21 if the Fed hikes at its meeting earlier that month.