Macro Analysis /

Mexico: Banxico – Hike confirms the restrictive cycle, despite a divided Board

  • In a majority decision (3-2), Banxico hiked the reference rate by 25bps to 4.50%. Dissenters were Borja and Esquivel

  • The statement keeps a hawkish tone given concerns on inflation, also reflected in the upward move in the forecasts

  • We maintain our call of 3 more 25bps hikes for the rest of 2021, with the rate at 5.25%. For YE22 we see 6.00%

Gabriel Casillas Olvera
Gabriel Casillas Olvera

Managing DirectorInvestor Relations Officer and Chief Economist

Alejandro Padilla Santana
Juan Carlos Alderete Macal
Francisco Jose Flores Serrano
12 August 2021
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