Banxico Can’t Cut, ECB Caught in the Middle, PBOC Peek: Eco Day

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Welcome to Thursday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• Mexico shouldn’t start a cycle of easing borrowing costs amid threats by U.S. President Donald Trump to slap tariffs on Mexican goods, deputy governor Jonathan Heath said
• Market expectations for two Federal Reserve rate cuts by the end of September have overtaken expectations of only one, fed funds futures indicate
• Argentina’s inflation probably slowed for a second straight month in May on a combination of stable currency, price controls, and tight monetary policy
• The Swiss National Bank warned of worsening global downside risks, but kept policy unchanged. In keeping with its history of surprises, it also unveiled a new policy rate, dumping its Libor-based one
• At the European Central Bank, the race to succeed Mario Draghi as president is a proxy battle between Germany and France (again)
  • Whoever gets the job may have a tough time ahead if the region’s slump keeps going in its current direction
  • But the euro’s global usage is increasing again
• The People’s Bank of China has offered up a peek behind the central bank’s curtain. Meantime, a surge in pork prices is having less of an effect on inflation than it once would have, helping the central bank keep policy supportive

To contact the reporter on this story: Fergal O'Brien in Zurich at fobrien@bloomberg.net

To contact the editors responsible for this story: Craig Stirling at cstirling1@bloomberg.net, Zoe Schneeweiss

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