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 raise rates by 50bps to 7.00%, alongside expectations
- The board were split 4-1 in the vote, with Espinosa opting for 75bps hike
- Despite upward revision to inflation expectations, convergence to target still pegged at Q1 2024
Banxico raised rates by a further 50bps to a new cycle high of 7.00% at the May meeting, alongside consensus. The bank also upped their inflation forecasts across the forecast horizon, but retained their view that convergence to the inflation target will occur in Q1 2024. The outside risk of a member voting for faster tightening materialized, with Espinosa opting for a 75bps hike at this meeting.
The accompanying policy statement was broadly inline with the release from March, with one notable exception. The bank added that they would consider “more forceful measures” to meet their inflation goals going forward – a hawkish addition to their language that raises the upside risk to the market’s terminal rate assumptions.
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.