Banxico hikes policy rate to a fresh all-time high of 9.25%

Summary

Banxico will most likely stick to following in the footsteps of Fed’s upcoming hikes .

Key points

• Key points:
• Following in the footsteps of the Federal Reserve, Banxico delivered the widely expected third consecutive 75bp
• Decoupling from the Fed in the near term remains quite unlikely
• Little forward guidance but hints point to more outsized hikes in the next two meetings
• We expect 125bp worth of additional tightening by December, lifting the policy rate to 10.50% by year-end

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