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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
MNI Banxico Review - August 2022
MNI Banxico Review - August 2022
Executive Summary
- Banxico’s governing board unanimously decided to hike the overnight rate by 75bps to 8.50%.
- The decision was in line with all surveyed estimates prior to the decision and market pricing, with local asset prices little phased following the announcement.
- In a slight dovish tweak to the forward guidance paragraph, the phrase “same forceful measures” was not included. Instead, the MPC will now assess the future magnitude of hikes “based on the prevailing conditions”.
- While the new statement opens the door for a reduction in the pace of tightening in September, the tone of the statement remains hawkish with the balance of risks for the trajectory of inflation with the forecast horizon remaining “biased significantly to the upside”.
- Divergent opinions have emerged from analysts regarding the September decision, as well as their predictions over the terminal rate.
Click to view the full review: MNI Banxico Review - August 2022.pdf
The complete set of revised inflation forecasts were set out in the following table within the statement (Source: Banxico):
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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