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Banxico Keeps Rates Unchanged at 11.25%, Retains Language

BANXICO

An inline decision from Banxico, who keep policy rates unchanged at 11.25%, as expected.

Statement in Spanish here: https://www.banxico.org.mx/canales/%7B3333F7DD-488..., in English here: https://www.banxico.org.mx/canales/%7BB23D1B36-7FC...

Statement Highlights:

  • Board decided unanimously to maintain the target
  • It estimates that the inflationary outlook will be complicated and uncertain throughout the entire forecast horizon, with upward risks.
  • It considers that it will be necessary to maintain the reference rate at its current level for an extended period.
  • Inflation expectations for the end of 2023 increased

Unanimous decision, retain guidance and unchanged rates lead to relatively little reaction in USD/MXN - pair is still holding toward the bottom-end of the day's range, with first intraday support undercutting at the low of 17.5816. Weakness through here opens light support at 17.4766.

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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