Banxico delivers second 50bp hike in a row

Summary

The hiking cycle has further to run but the Board might take the foot off the gas in coming meetings if core inflation starts to ease

Key points

• Key points:
• Banxico hiked the policy rate by 50bp for the second consecutive meeting, taking it to 6.00%
• In a split 4-1 vote, the new governor siding with the hawkish side of the Board
• The decision of a large majority of the Board, the hawkish tone of the statement, and the upward revision of the inflation forecasts, point to additional hikes ahead

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