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Scotiabank expects Banxico to deliver 100 bps of further hikes in 2021, taking the policy rate to 5.25% by December, followed by more tightening in 2022 to a 6.00% terminal rate. The bank says Banxico's June hike was the start of a front-loaded tightening cycle.
Higher Mexican rates raise financing costs for feed mills and livestock producers and can support the peso. The effect on feed prices is indirect and gradual.
scotiabank.comJul 9, 2021Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
