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MNI Mexico Central Bank Review – June 2024: Dovish Hold, With Dissenting Vote

MNI Banxico Review - June 2024

MNI Banxico Review - June 2024

Executive Summary

  • Banxico’s governing board decided to keep the overnight rate unchanged at 11.00%, in line with expectations. The decision was split 4-1, with Deputy Governor Mejía voting for a 25bp cut.
  • The accompanying statement had a dovish tilt, with the board noting the downward risks to growth, while the inflation outlook is expected to allow for the discussion of more rate cuts.
  • Analysts expect Banxico to resume cutting ahead, potentially at the next meeting in August, but for it to proceed cautiously with some seeing further pauses along the way.

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