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Banxico Hike Rates by 25bps to 4.75%, as Expected

MEXICO

Banxico hike rates by 25bps to 4.75%, alongside expectations. There was one sole dissenter on the board, with votes for a rate hike at 4 - 1.


Full policy statement here: https://www.banxico.org.mx/canales/%7B6CEE4FD0-CC4...


Highlights from the release:

  • The balance of risks for the trajectory of inflation within the forecast horizon is biased to the upside.
  • Although the shocks that have increased inflation are expected to be transitory, due to their variety [...] they may pose risks to the price formation process and to inflation expectations
  • Esquivel was the sole dissenter, voting to keep rates unchanged.
With the rate decision largely alongside expectations, very little reaction in the USD/MXN rate, trading either side of 20.55 at typing. Intraday high at 20.659 acts as first resistance ahead of mid-June's 20.7488.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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