Mexico: Banxico – We expect a 10% reference rate by year-end
Banxico unanimously voted to hike the reference rate by 75bps to 7.75%, accelerating the pace of its tightening cycle
Inflation forecasts were adjusted strongly to the upside, while a message of 75bps being a ceiling was resounding
We now forecast +75bps in August, followed by three 50bps hikes, taking the rate to 10% by YE22
Executive Director of Economic Research and Financial Markets Strategy @ Banorte
