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.
Executive Summary:
- Banxico’s governing board decided to hike the overnight rate by 50bps to 6.50%, inline with expectations
- The board voted unanimously, with previous dissenter Esquivel joining the rest of the board to vote for a 50bps hike
- Analysts see further tightening this year, coalescing around a year-end overnight rate of 7.75 - 8.25%
MNI Banxico Review - Mar 2022.pdf
Banxico’s governing board decided to hike the overnight rate by 50bps to 6.50%. The decision was inline with expectations, although the market response was difficult to gauge given the pre-announcement of the policy decision by President AMLO earlier in the session. Nonetheless, there was little material change to market pricing and prompted little reaction in both the currency and TIIE swap rates.
The board voted unanimously in favour of the 50 basis point hike, with the previous dissenter Deputy Governor Esquivel joining the rest of the board to vote for a 50bps hike. This decision marked the first time in this tightening cycle that the Bank board had been unified in their decision. The forward guidance was broadly unchanged, with the bank retaining their language that they will “monitor tightly” inflationary pressures in order to achieve their convergence goals.
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.