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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 - December 2023
MNI Banxico Review - December 2023
Executive Summary
- Banxico’s governing board decided to keep the overnight rate unchanged at 11.25%, in a unanimous decision. The committee retained the prior guidance noting "it considers that, in order to achieve an orderly and sustained convergence of headline inflation to the 3% target, the reference rate must be maintained at its current level for some time."
- The notable development was the higher adjustments for both headline and core inflation throughout 2024, indicating the committee sees a slower disinflationary process than it did in November.
- The unchanged guidance and increase to the inflation forecasts have prompted many sell side analysts to reduce their probability of a rate cut at the first meeting in 2024 (February), although the majority do not rule it out.
- In the immediate aftermath of the decision, both hawkish aspects lent support to the peso with USDMXN trading from around 17.33 to around 17.15.
Click to view the full review:
MNI Banxico Review - December 2023.pdf
The complete set of revised inflation forecasts were set out in the following table within the statement:
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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