As expected.
- The balance risk to growth has improved on the margin
- Board was unanimous to hike rates
- raise interest rates to avoid contagion in prices and anchor inflation expectations
- will also be vigilant on relative monetary policy stance with the US and output gap
- inflation will be above the bank's target range in 2017
- sees inflation in final months trending down toward the goal
- sees inflation at end of 2018 close to 3% target
- despite significant gains in peso uncertainty remains in the external environment
- Principal challenge faced by board is to avoid second order effects on inflation and to anchor inflation expectations in medium and long term
- Aggregate demand not expected to pressure inflation
The USDMXN has just dipped to new session lows (and lows going back to election day). Looking at the hourly chart below the 18.5500 area represents the lower trend line. The low from Friday/Monday stalled against the trend line.
The
