The Bank of Mexico's (Banxico) decision will follow last week's move by the US Federal Reserve to maintain its benchmark rate, while saying cuts could begin as early as July.

Banxico is forecast to hold the key lending rate at 8.25pc, the level it has maintained since Dec. 20, according to all 16 analysts and economists consulted by Reuters.

Mexico's economic activity increased slightly in April compared to the previous month, while gross domestic product fell 0.2pc in the first quarter.

Inflation rose slightly slower than expected in the first half of June.

The bank also kept its interest rate at 8.25pc in mid-May, forecasting an environment of increased uncertainty for growth in Latin America's second largest economy.

Banxico will publish its monetary policy statement on Thursday at 1 p.m. local time (1800 GMT).