Citibanamex expects Banxico to raise its interest rate by 50 basis points

Citibanamex expects Banco de México (Banxico) to raise the interbank interest rate by 50 basis points on Thursday, due to further deterioration in macro-financial conditions.

The institution has increased its previous estimate of 25 points for the announcement of the central bank's monetary policy decision.

"For Banxico's purposes, we believe this implies greater weight for financial stability considerations in its decision-making process and therefore a stronger message through a 50 basis point increase in the policy rate." % – at the meeting tomorrow, "he said in an analysis.

He recalled that on November 6, the financial institution changed its macroeconomic framework planned to adopt a rate increase of 25 basis points, instead of a decision not to change, to reflect the significant deterioration of financial variables .

The above, in turn, indicated the incorporation of a higher risk premium as a result of the President-elect's decision. Andrés Manuel López Obrador cancel the construction of the New Mexico International Airport (NAIM).

"We explained that a 25-basis-point rate increase at the November Banxico meeting had already been taken for granted (considering a change outlook unchanged) given the reassessment of the risk. by the market, "he said.

The bank has since felt that local financial conditions have deteriorated further, which is why it has changed its forecasts.

RCP