Overview
- Banxico kept its key rate at 7.00% in its March meeting after INEGI reported consumer inflation at 4.63% year over year.
- Analysts at Bx+, Goldman Sachs, and Pantheon said higher oil prices linked to the Middle East conflict raise price risks through fuel and transport costs and favor a cautious stance.
- Economists warned that repeated minimum wage hikes without productivity gains push up labor costs that feed into services prices, which they say remain above 4%.
- INEGI’s activity gauge fell 0.9% on the month, a decline that signals softer growth as borrowing stays expensive for households and firms.
- An El Economista column criticized Banxico’s stance as too lax and urged leaving room for hikes to protect credibility, while Banamex still models rate cuts later this year but flags upside inflation risk.