- Analytics
- News and Tools
- Market News
- USD/MXN: Peso could be punished if Banxico abandons hawkish stance – Commerzbank
USD/MXN: Peso could be punished if Banxico abandons hawkish stance – Commerzbank
The Mexican central bank (Banxico) surprisingly opted to raise its policy rate by 50 bps. The MXN reacted sharply appreciating. However, the Peso could still come under pressure if Banxico does not remain hawkish, economists at Commerzbank report.
Banxico maintains pace and sends MXN soaring
“Banxico surprised with a 50 bps rate hike to now 11%, sending the MXN soaring.”
“Banxico is proving to be an inflation fighter after the departure of central bank member Gerardo Esquivel, who was considered a big dove, which should in principle help the Peso.”
“The big question now is where the peak in the interest rate cycle will be, since core inflation in particular shows no signs of easing yet, which makes it important for Banxico to remain hawkish. Otherwise, it risks that the MXN will ultimately be punished after all.”
© 2000-2024. 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
