LatAm Daily | Banxico increased its MPR by 50bps, taking it to 4.25%
Published on Friday, July 1, 2016
LatAm Daily | Banxico increased its MPR by 50bps, taking it to 4.25%
Summary
Concerns over the risks that current exchange rate depreciation poses on core inflation and its expectations, led the CB of Mexico to raise its benchmark rate. Exchange rate will be the key variable to follow in a context of a more gradual pace of MP normalisation in the US. Moreover, activity data by sector in Chile anticipates an Imacec with a ceiling of 2% YoY in May.
Geographies
- Geography Tags
- Latin America
- Brazil
- Colombia
- Mexico
Topics
- Topic Tags
- Macroeconomic Analysis
Authors
Enestor Dos Santos
BBVA Research - Principal Economist
Lorena Lechuga
Hugo Perea
BBVA Research - Chief Economist
Cecilia Posadas
BBVA Research - Principal Economist
Jorge Selaive
Carlos Serrano
BBVA Research - Chief Economist
Juana Téllez
BBVA Research - Chief Economist