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Borja Flags Possibility of Breaking Hike Cycle with the Fed

MEXICO
  • A finance ministry statement overnight showed progress toward a review of sovereign issuance with regards to the UN’s sustainability goals. The review is to take in both the allocation and the impact of Mexico’s sovereign issuance strategy.
  • Late yesterday, Banxico’s Borja flagged the option for the bank to break the Banxico’s rate-setting ties to the Fed. Borja saw Mexico being able to break the pattern of tandem rate hikes if economic variables improve.
  • The board member also flagged the higher than average rate differential between Mexico and the US, which stands at 600bps having averaged 450bps between 2008 and 2020.
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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