Mexican central bank hikes 50 bps vs 50 bps expected

• Main rate hiked to 7.00% from 6.50%
• One dissenter voted to hike by 75 bps, four others voted for 50
• Prelim info suggests activity rebounded during Q1
• Given growing complexity in the environment for inflation and its expectations, taking more forceful measures to attain the inflation target may be considered
• Environment of uncertainty and ample slack continues to prevail, though slack narrowed
• Revised up inflation forecast
• Convergence to 3% inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term target in Q1 of 2024 is maintained

USD/MXN has been locked in a range around 20 since late 2020. There was little reaction to this decision initially but some of the headlines were hawkish.