Interest rates

Interest rates latest publications

June 25, 2020

Banxico surprisingly and adequately strikes a dovish tone

Banxico cut the policy rate by 50 bp to 5.0% and surprisingly made significant dovish tweaks to the wording of the statement.

May 8, 2020

Peru | The Central Bank will keep a highly expansive policy stance for a prolonged period

The Board of the Central Bank decided to maintain the monetary policy rate at 0,25% in May. The accompanying statement included a “forward guidance” component, with the Bank committing to the current monetary policy stance as long as the negative effects of COVID-19 persist.
  • Geography Tags
  • Peru

April 21, 2020

Banxico cuts its policy rate 50bp to 6.0% at an unscheduled meeting, as we anticipated

We expect Banxico to take the policy rate to 3.0% by year-end. In an unanimous vote, Banxico lowered the policy rate by 50bp to 6.00%.

February 13, 2020

Banxico cuts its policy rate for the 5th meeting in a row

The monetary policy rate has plenty of room to decline without affecting inflation or the MXN.

February 12, 2020

Banxico to continue the cautious pace of easing

The monetary policy rate has plenty of room to decline without affecting inflation or the MXN. The rate cut cycle should continue without a pause at least until the monetary policy stance is not restrictive.

January 29, 2020

FOMC Meeting: January 28th-29th

Considering the absence of material changes over the intermeeting period, the Fed left target range of federal funds rate unchanged at 1.5-1.75%.
  • Geography Tags
  • USA

December 19, 2019

An overly cautious Banxico cut its policy rate to 7.25%

There is still plenty of room to cut rates; we expect the monetary policy stance to reach neutrality by the summer of next year.

December 18, 2019

Banxico’s rate cut cycle has legs

A faster easing pace is warranted but Banxico is likely to remain overly cautious. No signs that Banxico is willing to speed up the long overdue easing cycle.