Banxico remains overly hawkish

Summary

In our view, the start of the easing cycle is likely to come later than warranted. Banxico remained overly hawkish in its quarterly inflation report (yesterday) and in the minutes of the last meeting (16 May) released today.

Key points

• Key points:
• The little changed (overly hawkish) tone continues to signal an excessively cautious approach.
• A delay of the start of the easing cycle seems increasingly likely.

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