May 12, 2022 18:06 GMT
Banxico Raise Rates, Alongside Expectations
MEXICO
Banxico raise rates by 50bps to 7.00%, alongside expectations. The board was not unanimous, with Espinosa voting for a 75bps rate rise today.
Full statement here: https://www.banxico.org.mx/canales/%7BD2A419D2-D38...
Highlights include:
- Forecasts for headline and core inflation were revised upwards up to the second and third quarter of 2023, respectively, although convergence to the 3% target in the first quarter of 2024 is maintained
- More forceful measures to attain the inflation target may be considered.
All-in-all an inline with expectations decision, with rates rising by consensus, and inflation forecasts bumping higher. Important to note the convergence estimate was unchanged at Q1 2024 - was some danger of this slipping, and risk of minority of members voting for larger rises materialised. A broadly neutral release and that's reflected in stable MXN - USD/MXN last at 20.3070, flat on the day.
New inflation forecasts here:
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