Bank of Mexico
Another Bank of Mexico Policy Rate Hike
June 24, 2022
The Bank of Mexico’s overnight interbank rate was lifted by 75 basis points to 7.75%, matching market expectations and also the recent incremental tightening of the federal funds rate. 7.75% constitutes the Mexican policy rate’s highest elevation since shortly before the pandemic’s onset. The rate’s pandemic low of 4.0% occurred between February and June of […] More
Softer Dollar and Yen
June 24, 2022
The dollar firmed 0.2% overnight against the yen but otherwise slipped 0.3% against the Swiss franc, peso, and kiwi, 0.2% relative to the loonie and sterling, and 0.1% versus the euro and on a weighted DXY basis. Equity markets are headed for a weekly advance, which has been a rare occurrence in 2022. The street […] More
Investor Bottom-Fishing
May 13, 2022
Within bear markets, brief interruptions happen typically as investors pause to take in the carnage and test markets to see if perhaps enough has been lost to secure a trend reversal. Today’s been one such instance. Share prices rose in Pacific Basin markets by 2.7% in Hong Kong, 2.6% in Japan, 2.1% in South Korea, […] More
Another Hike of Mexico’s Overnight Interbank Interest Rate Target
May 12, 2022
The Bank of Mexico’s Governing Board was still in an accommodating mood one year after the pandemic’s onset and made one final cut of its policy interest rate in February. But as inflation in Mexico and around the world began to heat up that spring, it did not take the central bank officials long to […] More
Mexican Overnight Interbank Rate Lifted to 6.0% from 5.5%
February 10, 2022
Two developments prompted policymakers at the Bank of Mexico to implement their sixth interest rate hike since last June: high inflation and expectations that the U.S. federal funds rate target will be increased next month. One year ago in February 2021, Mexico’s central bank policy rate had actually be cut by 25 basis points to […] More
Bank of Mexico Raises Overnight Interbank Rate by Greater-than-Expected 50 Basis Points
December 16, 2021
The four previous rate hikes in June, August, September and November had been all 25-basis point changes, and analysts had assumed a similar increment. The rate was cut by three percentage points in 2020 and topped off by a 25-basis point reduction to 4.0% in February of 2021. The vote was not unanimous, as one […] More
Bank of Mexico’s Overnight Interbank Rate Lifted Again
November 12, 2021
Officials at the Bank of Mexico by a vote of four to one authorized a fourth straight 25-basis point hike of the overnight interbank rate to 5.0%. Before the magnitude of global inflationary pressure was understood, the rate last February had been sliced by 25 basis points to 4.0% to culminate 325 basis points of […] More
A Mostly Inconsequential Friday
November 12, 2021
The dollar marked time overnight. It’s weighted DXY value did not climb further after reaching highs on Thursday not seen since July 2020. The dollar is also unchanged from Thursday closing levels against the euro, yen, loonie, and kiwi, up 0.3% versus the Turkish lira and 0.2% against the Swiss franc but down 0.2% vis-a-vis […] More
Central Banks in Mexico and Colombia Lift Interest Rates by 25 Basis points
September 30, 2021
The Bank of Mexico’s overnight interest rate, which had been cut by 25 basis points in February to culminate a cumulative reduction of 325 basis points over a one-year period, has been subsequently raised by 25 basis points three subsequent times to 4.75% to counter rising inflation and ensure that inflation will settle back to […] More
Robust Sentiment Indices
June 25, 2021
The dollar posted fractional losses overnight, dipping 0.1% on balance against the euro, yen, loonie, Swiss franc, Aussie dollar, New Zealand dollar, and on a DXY weighted basis. The dollar also fell 0.3% versus the Chinese yuan, Mexican peso, and Turkish lira. Equity markets advanced 1.4% in Hong Kong, 1.2% in China and 0.7% in […] More
