Free Trial

Banxico Raise Rates, Alongside Expectations


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:

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:

MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.