MXN - Banxico

MXN - Banxico

05-AUG-2022

BANXICO ANNOUNCEMENT : Mexico's central bank is expected to lift rates by 75bps to 8.50%. It would be the second hike of that increment this year, and would match the US Federal Reserve recent move. At over 8%, inflation is soaring above the central bank's 3% target. However, growth conditions have held up, with the Mexican economy posting a third consecutive quarter of growth. Banxico has thus far raised rates by a cumulative 375bps over the last nine meetings, and according to a poll by Reuters, the key interest rate is likely to reach 9.5% by the end of this year.