Deutsche Bank Previews This Week's Policy Meetings at Mexico, Chile Central Banks

11:33 AM EDT, 03/23/2026 (MT Newswires) -- Deutsche Bank said it expects Chile's central bank (BCCh) to keep rates on hold at 4.5% on Tuesday.

The geopolitical shock in the Middle East is adding upside risks to inflation and downside risks to economic activity, and its macroeconomic implications would depend on the duration and scope of the ongoing disruptions in energy markets, noted the bank.

These concerns are likely to be reflected in the Quarterly Inflation Report on Wednesday, showing a monetary policy corridor with wider confidence bands and, potentially, with no further cuts for the rest of the year as a central scenario, consistent with Deutsche Bank's in-house view.

Deutsche Bank retained its Mexico central bank's (Banxico) 25bps rate cut call for Thursday.

The bank estimates the statement to argue that the tax/tariff shock of early 2026 has remained limited and without second-round effects, while the inflationary impact from the oil shock has been cushioned via fiscal counter-measures.

Against this backdrop, Deutsche Bank predicts Banxico's dovish majority will validate the guidance it has provided in recent communication and resume policy easing.

Given the fluidity of the geopolitical developments, Deutsche Bank expects the tone of the policy statement to skew hawkish and the forward guidance to be non-committal.

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