- Analytics
- News and Tools
- Market News
- Banxico and Fed: A decouple in February seems now possible – BBVA
Banxico and Fed: A decouple in February seems now possible – BBVA
On Thursday, the Bank of Mexico rose the key interest rate by 75 basis points as expected to 10%. According to the Research Department at BBVA, Banxico will likely still match December’s Federal Reserve interest rate hike but they point out that a decouple in February seems now possible.
Key Quotes:
“Banxico acknowledged for the first time, when explaining what it took into account for today’s decision, the “policy stance that has already been reached in this hiking cycle. Also hinting at a near end of the tightening cycle, Mr Gerardo Esquivel
voted for a smaller 50bp rate hike.”
“We continue to think that Banxico will still stick to its strategy of matching December’s Fed most likely hike of 50bp. Yet, we now think that today’s acknowledgement of “the policy stance that has already been reached” with inflation set to soften ahead and the monetary stance becoming more restrictive by the first meeting of next year (in Feb) opens the door for a decoupling for the Fed as soon as in Feb.”
© 2000-2025. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
