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February 9, 2023
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Banxico goes for a new increase of 25 points, following the Fed

Banxico goes for a new increase of 25 points, following the Fed

Last week, the Fed raised its interest rate target by 25 points, softening the magnitude of previous hikes, but warned that even as US inflation has eased, it remains high.

In Mexico, Banxico has raised its key rate by 650 points since June 2021, and even raised the rate by 75 basis points as inflation soared to 8.7%, its highest level in two decades.

Inflation in January is expected to be 7.89%, slightly above the December figure.

The inflation data will be released on the same Thursday as the monetary policy announcement. Inflation closed last year at 7.82%.

Inflation expectations for the end of this year is 5.15%, according to the Citibanamex survey.



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