The further rise in Mexico’s headline inflation rate to 8.2% y/y in the first two weeks of July means that Banxico is all but certain to deliver another 75bp hike in interest rates, to 8.50%, at its next policy meeting in August. Inflation is probably now close to a peak but it will remain above the 2-4% target range for some time and, as a result, we expect rates to be taken up to 10.00% by end-2022.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.