Financial Markets

Financial Markets latest publications

June 21, 2022

Mexico | The financial system shows resilience in the face of the current risk scenario

In addition to the remaining effects of the pandemic, challenges associated with the geopolitical conflict between Russia and Ukraine, global inflationary pressures and the tightening of financial conditions worsen the current risk scenario.

June 21, 2022

US | Treasury yields likely to increase further

They will peak once the Fed is done tightening. Slowing demand to bring down inflation without significant pain is “not getting any easier”, but markets (still?) price in a soft landing.

June 20, 2022

Europe | Monetary policy normalization pushes up risk premia

The European Central Bank (ECB) has taken a further step in its process of normalizing monetary policy by announcing at its latest meeting that it will end its asset purchase program in July, and that it is prepared to pick up the pace of its rate hikes to contain inflation, in line with other central banks.

June 13, 2022

Europe | The ECB is on a journey

At last week's ECB meeting Christine Lagarde announced that the central bank has started out on a "journey" toward the normalization of monetary policy through a series of measures that it will take gradually over the next few months.

June 9, 2022

Europe | The ECB confirms a series of hikes

The ECB took a decisive step in its monetary policy normalization journey today as it pre-announced a series of interest rate hikes, starting next month. The unanimous decision was accompanied by a notable upward revision to Euro Area’s inflation projections and a downgrade on the growth outlook

June 9, 2022

Mexico | Monthly Report on Banking and the Financial System. June 2022

In April 2022, the balance of traditional bank deposits exhibited a real YoY growth rate of 1.5%, while outstanding credit granted by commercial banks to the non-financial private sector (NFPS) grew 0.9% in real terms, the first real growth rate recorded since July 2020.

May 25, 2022

Mexico Banking Outlook. First half 2022

Credit to households has shown greater recovery and is the main impulse for the growth of financing to the private sector, while the weakness of business financing lingers. Likewise, demand deposits maintain their dynamism, while the growth of time deposits remains in red figures.

May 16, 2022

US | Treasury yields and interest rates will likely peak once the Fed is done tightening

Bringing inflation back down to target will likely cause “some pain”; yet, markets are (still) pricing in a soft landing. With the Fed set to hike rates by 50 bps in June and July, the tightening pace is set to be the fastest since the 1994-1995 hiking cycle.