Overnight rate held unchanged after February's surprise hike

The Mexican central bank hiked rates 50 bps in a surprise move in February as they fought inflation and MXN weakness.

At the moment, they have a neutral take. They say the balances of risks to growth and inflation are unchanged compared to the prior statement.

  • Fixed investment was weak in Q1
  • Demand unfavorable in Q1
  • More MXN depreciation in CPI risk