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Esquivel Voted For 50Bp Hike Because Conditions Have Deteriorated

MEXICO
  • Banxico's Gerardo Esquivel speaks in Banorte podcast interview:
    • Estimates suggest Mexico inflation will peak in 2Q'22 (BBG)
    • Mexico inflation to descend slower than expected (BBG)
    • I voted for 50bps because conditions have deteriorated (BBG)
  • More pessimistic view on inflation converging to target from Banxico’s most dovish board member.
  • This is in line with the most recent, and slightly hawkish, unanimous decision from the board to hike rates 50bp last week.
  • As a reminder, Deputy Governor Esquivel had been dissenting at prior meetings, voting in favour of smaller rate increases.

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