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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 2022
MNI Banxico Review - December 2022
Executive Summary
- Banxico's governing board decided to hike the overnight rate by 50bps to 10.50%. On a similarly dovish note to the November meeting, board members were split in their decision, with Deputy Governor Esquivel voting for a smaller hike of 25bps.
- Expectations for headline inflation for year-end 2022 and 2023 were revised downwards, while those for core inflation were again adjusted slightly higher.
- In terms of forward guidance, the committee considers that a policy rate increase will be “still be necessary” at the February meeting. However, subsequently the board “will assess if the reference rate needs to be further adjusted as well as the pace of adjustments based on the prevailing conditions”.
- The majority of analysts believe the statement strikes a more dovish tone by clearly indicating that the tightening cycle may end at the committee’s next meeting. There remains some divergence on whether Banxico will opt for a 25 or 50bp hike in February.
Click here for the full review:
MNI Banxico Review - December 2022.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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