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Banxico raised its overnight rate by 25 basis points to 4.25%, surprising markets, and adopted a more hawkish tone. The bank said inflation is running above forecasts, with headline CPI at 6.02% y/y in early June, and expects convergence to its 3% target to be delayed to the third quarter of 2022.
The surprise hike and warning of persistent inflation strengthen the peso and signal tighter Mexican credit, which can slow feed and livestock expansion and modestly reduce demand for imported feed ingredients.
forex.caadminJun 24, 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.
