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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 raised rates by 75bps to 9.25%, alongside expectations
- The bank re-instated their rate differential with the Fed in a unanimous decision
- Consensus sees further tightening in November, with terminal rate eyed at 10.50 – 11.00%
Full Review including summary of sell-side views here:
The bank made sharp upward revisions to both their headline and core inflation forecasts, pushing projections higher by 0.1ppts for Q3'22, 0.5ppts for Q4'22 and higher by 0.8 - 1.1ppts through 2023. While, the longer-term inflation views were kept broadly unchanged, they remain above the top-end of the bank’s target.
Sell-side consensus is forming around September’s hike bringing Banxico closer to (but not at) the peak of the tightening cycle, with most seeing a further Fed-matching 75bps hike in November. Peak rates are now forecasted at 10.50 – 11.00%, with the bank reaching this level at the end of Q1 next year.
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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