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MNI Banxico Review - Feb 2022: Smooth Transition

Banxico Review - Feb 2022

Banxico Review - Feb 2022

Executive Summary

  • Banxico’s governing board decided to hike the overnight rate by 50bps to 6.00%. The decision was very much in line with consensus and market pricing and prompted very little reaction in both the currency and TIIE swap rates.
  • The board voted 4-1 in favour of the 50 basis point hike with Deputy Governor Esquivel, the sole dissenter, once again voting to increase the key rate by a more mild 25bps.
  • The forward guidance remained very similar to previous communique. Newly appointed Governor, Victoria Rodriguez, joined the hawkish majority which indicates a smooth transition from the Diaz de Leon regime, reducing any lingering risks surrounding Banxico’s autonomy.

Click to view the full review: MNI Banxico Review - February 2022.pdf

Source: Banxico Statement

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