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Itaú Say Year-End Rate Forecast Stands At 10.75%

MEXICO
  • Itaú’s end of year policy rate forecast stands at 10.75%, which implies a 25-bp rate cut in each of the last two meetings of the year (November and December).
  • In their view, a still concerned Board with inflation and on-going Fed rate hikes mean policy rate cuts are unlikely in the short-term.
  • However, Itaú believe as inflation eases more clearly towards the end of the year Banxico will start an easing cycle in 4Q23.

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