📝See Banxico Hiking Rates By 25Bps In March: J.P. Morgan

Banxico is finally in a better footing to stick to its

February guidance: a hike of a smaller magnitude is likely. Expect the Mexican central bank to hike rates by 25bps on March 30, followed by another 25bps rate hike in May.

We think an end of the tightening cycle is nearing, but questions remain in terms of the communication needed to guide the market given increasing global uncertainty and volatility.

Banxico needs to acknowledge that Fed decisions and financial markets unrest are now more important than before. We see riks tilted towards an earlier cut, as soon as late 2023, but it is still too early to tell. - J.P. Morgan