© 1982-2022 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial
AUSSIE BONDS

AOFM Weekly Issuance Slate

CHINA RATES

China Repo Rates Diverge On Friday

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Trending Top 5
Topics

BofA Forecast Back-to-Back 75BP Hikes From Banxico

MEXICO
BulletEM BulletEmerging Markets
  • Bloomberg have reported that Bank of America analysts believe Mexico’s central bank will deliver back-to-back interest rate hikes of 75 basis points and may even consider an intra-meeting borrowing cost increase in coming months as policy makers battle above-target inflation.
  • Banxico will raise rates to 9.5% this December, up from the prior forecast of 9%, BofA economists wrote in a note Thursday.
    • Never since starting their inflation-targeting regime in 2008 have policy makers lifted borrowing costs by more than half a percentage point.
  • “We do not discard an intra-meeting decision in the following months,” they wrote. “Banxico is trying to put the policy rate above neutral fast in order to lower core inflation and to prevent the peso from depreciating much vs the dollar, to avoid amplifying external price pressures.”
  • BofA also highlighted the relative calm in Mexico, describing the country as an “oasis” compared to other Latin American countries amid the lack of politically relevant events until the next presidential election in mid-2024.
161 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • Bloomberg have reported that Bank of America analysts believe Mexico’s central bank will deliver back-to-back interest rate hikes of 75 basis points and may even consider an intra-meeting borrowing cost increase in coming months as policy makers battle above-target inflation.
  • Banxico will raise rates to 9.5% this December, up from the prior forecast of 9%, BofA economists wrote in a note Thursday.
    • Never since starting their inflation-targeting regime in 2008 have policy makers lifted borrowing costs by more than half a percentage point.
  • “We do not discard an intra-meeting decision in the following months,” they wrote. “Banxico is trying to put the policy rate above neutral fast in order to lower core inflation and to prevent the peso from depreciating much vs the dollar, to avoid amplifying external price pressures.”
  • BofA also highlighted the relative calm in Mexico, describing the country as an “oasis” compared to other Latin American countries amid the lack of politically relevant events until the next presidential election in mid-2024.