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 - June 2022
Executive Summary
- Banxico's governing board unanimously decided to hike the overnight rate by 75bps to 7.75%.
- Inflation Forecasts were revised substantially higher through to Q3 2023.
- In terms of forward guidance, the statement left the door open for future 75bp hikes, noting that “for the next policy decisions, the Board intends to continue raising the reference rate and will evaluate taking the same forceful measures if conditions so require."
Click to view the full review: MNI Banxico Review - June 2022.pdf
Mexico’s central bank accelerated the pace of policy tightening, delivering the country’s biggest hike in borrowing costs in recent times shortly after latest mid-June CPI data showed annual inflation running at a 21-year high. The hike is the largest since the bank started using inflation targeting in early 2008.
The central bank raised its inflation forecasts substantially, lifting its outlook for headline inflation through the third quarter of next year. Banxico now sees inflation accelerating to 8.1% in Q3 2022 (see projections below). It doesn’t expect inflation to converge on its target until Q1 2024. In a somewhat hawkish development, and for the first time in recent history, the MPC noted that not only medium-term but also long-term inflation expectations have increased.
Source: Banxico 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.