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Banxico Seen Raising Rates to 7.00% Thursday

MEXICO
  • Full MNI Preview here: https://marketnews.com/mni-banxico-preview-may-2022-to-stick-to-50bps-clip
  • Includes MNI POV and summary of sell-side analyst views.
  • Banxico are expected to raise rates by a further 50bps to a new cycle high of 7.00% at the May meeting, retaining the pace of tightening from the previous three policy meetings.
  • A 50bps move is consensus, despite a further deterioration in the inflation outlook, which is expected to prompt another upward revision to CPI forecasts at this meeting. A sharper than expected upward revision to forecasts could prompt a small number of policymakers to opt for a 75bps hike this month, but they’re expected to be among the minority.
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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