Banxico to hike 25bp to 8.00% with higher uncertainty and risks

Summary

Our call is based on MPC’s hawkish forward guidance and the materialization of some risks, especially a weaker MXN. A lot has changed in the intermeeting period and in our view a hike is warranted. We are not expecting an additional hike in December for now, but will depend on the MXN performance which will most likely be driven by the fiscal budget outcome.

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