Central banks

The ECB raised the deposit facility rate by 25bp to 2.25%.

The risks to inflation are becoming more skewed. We therefore expect that the ECB will hike the deposit rate to 2.25%.

The risks to inflation are becoming more skewed. We therefore expect that the ECB will opt for a 25bp risk-management hike next week.

President Lagarde foreshadows a rate hike in June.

Banxico announced its decision to cut the overnight policy rate 25bp to 6.75% at the most recent meeting.

We expect Banxico to hold the overnight policy rate at 7.00% at the March 26 decision.