“They unanimously decided to vote for a 50 basis point hike, just to send the message that they have everything under control and are dealing with inflationary pressure with a firm hand,” commented Joel Virgen Rojano, strategist at TD Securities. “They send the signal that they don’t necessarily have to imitate the Federal Reserve.” Before […]
Tag: Banxico
Banxico must maintain a maximum rate for a minimum of 6 months, says Deputy Governor Heath
With consumer price increases barely slowing from a two-decade high, Banxico, as the Mexican central bank is known, will likely raise its benchmark rate by at least another quarter point, the deputy governor said in an interview. The recent increases brought borrowing costs closer to their so-called terminal rate, which “intuitively” can be between 10.75% […]
The Mexican peso ends the week at its best level since 2020
The Mexican peso closed this week at its best level in almost three years, ending this Friday at 18.77 units per US dollar, according to the Bank of Mexico (Banxico), the first time it has traded below 19 since 2020. This is its best close since February 18, 2020, when it ended the day at […]
Heath says Mexico’s core inflation is ‘severe’
Updated on 10/01/2022 03:01 am Jonathan Heath, member of the board of the central bank of Mexico, activated the alarms regarding the acceleration of the inflation underlying, saying in a series of tweets that the situation is “serious” and may indicate a structural problem. Although annual inflation at the end of 2021 was slightly lower […]
Central Bank of Mexico will launch its digital currency by 2024
Updated on 12/31/2021 04:50 am Mexico’s central bank will have its own digital currency in circulation by 2024 as part of efforts to boost financial inclusion. “Considering these new technologies and state-of-the-art payment infrastructure are of utmost importance as high-value options”The federal government wrote on its Twitter account Wednesday night, confirming the bank’s plan. Around […]
Neither aggressive hike can calm inflationary fears in Mexico
The surprising and audacious rate hike Mexico was not enough to convince investors that the central bank will be able to control the inflation. That should help the weight maintain its attractiveness. The nation’s two-year breakeven remains above the official inflation target range of 2% to 4% even after Banxico, as the central bank is […]
Leadership change will test the Mexican central bank amid rising inflation
The surprising turn of the helm by the Mexican president Andrés Manuel López Obrador in the nomination process for the next president of Bank of Mexico (Banxico) has cast doubt on the bank’s rate-tightening cycle as it struggles to keep high inflation under control. López Obrador, a leftist politician who has already placed three of […]
Banxico faces uncertainty ahead of meeting, according to governor
Mexico’s central bank’s next monetary policy decisions will be data-driven and dependent on any additional price shocks, Governor Alejandro Díaz de León said, indicating that policymakers are not committed to an established path for Interest rates. “We are neither pointing in a certain direction nor ruling out any direction”, Diaz de León said in a […]
Banxico Board divided: ‘inefficient’ or required hikes?
Updated on 10/16/2021 03:43 am A “more aggressive tightening” of monetary policy is likely to be required. Mexico to face the complex risk scenario that looms, said a member of the country’s central bank, according to the minutes of its last meeting published on Thursday. The majority of the five-member Board of the Bank of […]