JM8 - Banxico sticks with a gradual pace of pre-emptive tightening

Summary

The Central Bank will most likely hike again in December, but not at a faster pace; the probability that the hiking cycle continues in 1Q22 has increased .

Key points

• Key points:
• The tone of the statement is broadly unchanged, but it has some tweaks that could be interpreted as hawkish
• Yet, the wording showed no signs that the majority of the Board could lean to increase the tightening pace
• The sizable upward revision in Banxico's expected core inflation path suggests that the odds of additional hikes in early 2022 have increased

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