MXN - Banxico

MXN - Banxico

11-NOV-2022


BANXICO REVIEW: Mexico's central bank lifted rates by 75bps, taking the overnight rate to 10.0%. Analysts note, however, that the meeting statement saw the introduction of some dovish language. The central bank downgraded its year-ahead inflation view for the first time since the tightening cycle began. "Nevertheless, with core inflation still rising and way beyond the target range - along with the continuation of the Fed's tightening cycle - we do not expect the Bank of Mexico to end its own tightening phase any time soon," SocGen's analysts said; they expect the central bank to lift rates by 50bps in December, and retain the option for further rate hikes next year.