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Banxico Governor Says Faster Banxico Rate Hike Is On The Table

MEXICO

Banxico Governor Rodriguez talking during the presentation of the Quarterly Report:

  • Must send message showing Banxico CPI commitment
  • Faster Banxico rate hike is on the table
  • Banxico to study all variables in future decisions
  • Mexico has high rate differential with US, may rise
  • Mexico peso strength comes from macro stability (ALL BBG)

Additional comments from Banxico Deputy Governor Espinosa:

  • Bigger hike needed on upward CPI revisions (BBG)
  • Current Banxico rate isn't consistent with easing CPI (BBG)
    • Worth noting she was the sole voter for a 75bp increase at the May meeting.

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