MXN - Banxico

MXN - Banxico

2-FEB-2024

Banxico Announcement (Thu)

Banxico's private sector analyst poll reveals an expectation that headline inflation will end this year at 4.17%, revised up from the 4.0% seen in the previous poll, as strong wage growth fuels inflation gains; the forecast for core inflation, however, was left unchanged at 4.06%. Many analysts do not expect headline inflation to fall back into the Banxico's 2-4% tolerance band until later this year. Accordingly, the timing may not be right for the central bank to cut rates next week. Analysts still see the Banxico's benchmark rate ending this year at 9.25%. Moody's says that although most LatAm economies are expected to report declining inflation rates for January, indicative of an overall improvement in their economies, not all are showing positive trends; Mexico's CPI is seen rising, which should result on Banxico maintaining its policy rate at 11.25% in February.