# Latam Flash: Mexico—Untangling Mixed Messages from Banxico—A Tightening Cycle Kicks Off | Post

> 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.

- Date: 2021-07-09 · published 2021-07-09T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/46281-latam-flash-mexico-untangling-mixed-messages-from-banxico-a-tightening-cycle
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

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.

## Read by commodity

- USDMXN: bearish ▼

## Sources

- scotiabank.com: https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.latam-flash.latam-flash--july-9--2021-.html

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