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Banxico Expected To Hold Rates Thursday, Tesla Gigafactory Permits Approved

MEXICO
  • Close to all analysts are expecting Banxico to keep the overnight rate unchanged at 11.25%. This would be in line with the current guidance from the committee that “the reference rate must be maintained at its current level for some time” to achieve a convergence of inflation to the 3% target.
    • However, given the improving inflation expectations and the most recent communication from multiple board members, markets will analyse this month’s statement for further clues on when easing could be initiated in 2024. Our full preview with analyst views will be published shortly.
  • In local news on December 11, Mexico notified Tesla on the approval of permits to build Gigafactory in Santa Catarina municipality in Nuevo Leon, Expansion reports, citing the approval document.

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