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Banxico Expected To Hike To 10.75%

MEXICO
  • All surveyed analysts expect Banxico to raise the overnight rate by 25bps at the February meeting. While the decision would represent a deceleration in the hiking pace, additional monetary tightening would be in line with prior guidance and is still deemed necessary due to the challenging inflation backdrop that remains in place, particularly for the core component.
  • Attention turns to the statement for any guidance on future decisions. Analysts remain split over whether this decision will mark the end of the tightening cycle or whether future hikes will be appropriate.
  • Separately, Britain's trade minister Kemi Badenoch begins a two-day visit to Mexico on Thursday, targeting a bilateral trade deal as well as Britain's accession to a Pacific trading association.

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