Free Trial

Scotiabank Say Fed’s Posture Bearing Down On Banxico’s Relative Stance

MEXICO
  • Consensus unanimously expects a 75bps hike. This follows guidance from Governor Victoria Rodriguez Ceja to this effect this past Wednesday and in the wake of the Fed’s 75bps move.
  • It also follows pretty explicit guidance by Deputy Governor Heath when he said “For us, raising 75 is a lot, I don’t think raising 100 is possible, it would be better 75, two or three consecutive times.” Heath guided that the terminal rate could rise to 10% from the present 7% overnight rate.
  • The Fed’s more aggressive stance is bearing down on Banxico’s relative stance.

To read the full story

Close

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.