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MNI Banxico Review – Dec 2024: Scope For Larger Cuts Ahead

Banxico’s governing board cut the overnight rate by 25bp to 10.00%, in a unanimous decision.
Bank of Mexico - ReviewHomepageLatAm Bank - ReviewAnalysisEM Central Bank ReportsMexicoEM Central Bank ReviewStoryNorth America

Executive Summary

  • Banxico’s governing board cut the overnight rate by 25bp to 10.00%, in line with most analyst forecasts, in a unanimous decision.
  • The Board continued to highlight the decline in core inflation and downside risks to growth, as it signalled the possibility of stepping up the easing pace in coming meetings.
  • However, upward revisions to the inflation trajectory offset the dovish rhetoric, and the unanimity points to a prudent committee, acknowledging risks from both a more hawkish Fed and risks associated with the incoming US administration.
  • Analysts are split over whether conditions will be met to accelerate the easing pace at all.

Click to view the full review: MNI Banxico Review - Dec 2024.pdf 

 

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Executive Summary

  • Banxico’s governing board cut the overnight rate by 25bp to 10.00%, in line with most analyst forecasts, in a unanimous decision.
  • The Board continued to highlight the decline in core inflation and downside risks to growth, as it signalled the possibility of stepping up the easing pace in coming meetings.
  • However, upward revisions to the inflation trajectory offset the dovish rhetoric, and the unanimity points to a prudent committee, acknowledging risks from both a more hawkish Fed and risks associated with the incoming US administration.
  • Analysts are split over whether conditions will be met to accelerate the easing pace at all.

Click to view the full review: MNI Banxico Review - Dec 2024.pdf 

 

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