# USD/MXN: Hawkish Banxico should be peso-positive – Standard Chartered: Analytics and Market news from 31 May 2022 14:51

> Standard Chartered now expects Banxico to raise its policy rate by 75bp in June, up from an earlier forecast of 25bp, after the central bank lifted rates by 50bp in May. The bank said a hawkish Banxico should support the peso in the near term, while noting the peso's rising correlation with US equities.

- Date: 2022-05-31 · published 2022-05-31T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/41664-usd-mxn-hawkish-banxico-should-be-peso-positive-standard-chartered-analytics
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Tighter Mexican monetary policy supports the peso, which lowers import costs for feed grains and meal priced in dollars. Higher rates also slow Mexican livestock credit and could eventually reduce feed demand.

## Read by commodity

- USDMXN: bearish ▼

## Sources

- teletrade.org: https://www.teletrade.org/analytics/market-analysis/market-news/3760651

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.