Searcher

Published on Thursday, December 15, 2022 | Updated on Friday, December 16, 2022

Banxico: We expect one last 25bp hike at February’s meeting

Banxico lifted the policy rate by 50bp, to 10.50% and strongly hinted that the end of the tightening cycle is in sight .

Key points

  • Key points:
  • "The board considers it will still be necessary to raise the reference rate in its next monetary policy meeting"
  • Today’s strong hint strongly supports our view that Banxico will decouple from the Fed as early as in March
  • We continue to expect that with excessively high real rates in a context of a worsening economic outlook and improving inflation outlook, Banxico will start to cut rates before the Fed, in 3Q23

Documents to download

Geographies

Topics

Has this information been useful?

New comment

Be the first one to add a comment.

Load more

You may also be interested in