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MNI Banxico Review – Aug 2024: Easing Cycle Resumes, In Split Decision

Banxico’s governing board cut the overnight rate by 25bp to 10.75%, in line with a narrow majority of analysts.

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Executive Summary

  • Banxico’s governing board cut the overnight rate by 25bp to 10.75%, in line with a narrow majority of analysts. The decision was split 3-2, with Deputy Governors Espinosa and Heath voting for no change.
  • The accompanying statement continued to strike a relatively dovish tone, with the board noting the downward risks to growth and further decline in core inflation, while the inflation outlook is expected to allow for the discussion of more rate cuts.
  • Many analysts see scope for Banxico to deliver another two to three cuts before year-end.

Click to view the full review:

MNI Banxico Review - Aug 2024.pdf

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Executive Summary

  • Banxico’s governing board cut the overnight rate by 25bp to 10.75%, in line with a narrow majority of analysts. The decision was split 3-2, with Deputy Governors Espinosa and Heath voting for no change.
  • The accompanying statement continued to strike a relatively dovish tone, with the board noting the downward risks to growth and further decline in core inflation, while the inflation outlook is expected to allow for the discussion of more rate cuts.
  • Many analysts see scope for Banxico to deliver another two to three cuts before year-end.

Click to view the full review:

MNI Banxico Review - Aug 2024.pdf