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Banxico's Esquivel Reiterates CB Should Start Thinking Of Cycle End

MEXICO
  • Banxico nears end of rate hike cycle, eyes economic toll, board member says - Reuters News
  • (Reuters) - Bank of Mexico board member Gerardo Esquivel cautioned against increasing the monetary policy rate to "excessively" restrictive levels as the economy remains weak, saying the bank's current rate-hiking cycle could end with rates between 10%-10.25%.
  • Esquivel did not project when the rate would hit what he called its terminal level in an interview with Reuters on Tuesday.
  • However, he stressed that it was "important to start thinking about" what that level would be using the so-called ex ante real rate.
    • "Once we reach the terminal rate, the discussion needs to be how long we stay there and we would have to see how observed inflation evolves in 2023," he said.

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