16 December 2022 | Other

Central Bank of Mexico increases rates similar to the Fed

Last month in Mexico, there was a significant drop in inflation. Currently, the central bank of Latin America's second-largest economy slowed the pace of interest rate increases. It announced that it will continue raising borrowing costs in early 2023.

The head of the central bank of Mexico (Banxico) is governor Victoria Rodriguez. Banxico has raised its key rate by 75 basis points four times in a row. On Thursday, the last increase was a half-point to 10.5%, which is a record level.

Capital outflows could weaken the peso. The bank wants to prevent it, so it tries to maintain the difference in interest rates. For this reason, politicians have made six consecutive decisions, replicating those of the Federal Reserve System. Some economists assumed that the tightening cycle was over. However, all five members of the Banxico board are reporting that the tightening cycle will rise again at the meeting scheduled on February 9.

Company MarketCheese
Period: 04.10.2026 Expectation: 3800 pips
Go short on GBPUSD with downside potential to 1.31500
Yesterday at 09:37 AM 19
Period: 18.09.2026 Expectation: 600 pips
Buy Brent crude up to $100
Yesterday at 06:36 AM 21
Period: 03.10.2026 Expectation: 5100 pips
Sell USDJPY down to 152.00
03 September 2026 32
Period: 03.10.2026 Expectation: 175 pips
Invest in ETHUSD up to $2,565
03 September 2026 21
Period: 30.09.2026 Expectation: 13000 pips
Go long on Brent crude with $99.50 target
02 September 2026 35
Expectation: 1200 pips
SPX sell-off targets 7,500
02 September 2026 26
Go to forecasts