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UBS Look for 100bps Further Banxico Hikes

MEXICO
  • Following yesterday's Banxico decision, UBS write that the bank again left the door open for rate hikes, but stopped short of signalling the need to accelerate tightening.
  • Their base case looks for 100bps further hikes this cycle (75bps November, 25bps in Dec) to bring rates to a terminal rate of 10.25%, below consensus, as UBS have a more benign inflation outlook than the Banxico themselves.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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