BANXICO: Staying On The Offensive
Mar-23 16:13
- Markets expect Banxico to raise rates by a further 50bps to 6.50% at the March meeting, with the upward trajectory of core inflation keeping the governing board on track with their most recent pace of tightening. However, ongoing global price pressures as well as the February minutes indicating a consideration of a 75bp hike, shows the possibility of one or two committee members voting for a larger hike should not be discounted.
- The latest set of minutes from the February meeting, one member had deliberated an even larger 75bps hike. Given the fact that inflation dynamics have worsened, there is potential for this consideration to gain broader traction among the committee. Thus, we would not completely rule out Deputy Governor’s Heath and/or Espinosa potentially dissenting at the March meeting and favouring a 75bps increase.
- Full Banxico preview here: https://marketnews.com/mni-banxico-preview-march-2...
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