Searcher

Banxico will act “more forcefully” and deliver, a widely anticipated, larger 75bp hike

Published on Wednesday, June 22, 2022 | Updated on Wednesday, June 22, 2022

Banxico will act “more forcefully” and deliver, a widely anticipated, larger 75bp hike

There is (now) a wide consensus that Banxico will match Fed’s expected hikes through December, taking the policy rate to 9.50% by year-end

Key points

  • Key points:
  • We anticipate that Banxico will revise its headline inflation forecasts upwards, as well as its core inflation expected path
  • We do not expect Banxico to continue to follow the Fed in early 2023
  • Banxico´s tightening will result in strong headwinds to the economy, something that, considering the time horizon in which monetary policy operates, will become evident next year

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