Banco de Mexico is expected to hike rates 25 bp to 5.5% - BBH

Research Team at BBH suggests that post FOMC, Banco de Mexico is expected to hike rates 25 bp to 5.5% but the market is split. 

Key Quotes

“Of the 25 analysts polled by Bloomberg, 17 see a 25 bp hike, 7 see a 50 bp hike, and 1 sees no hike.  We see a decent chance of a 50 bp move.  November CPI rose 3.32% y/y, the highest since December 2014 and above the 3% target for the second straight month.  PPI ex-oil rose 7.87% y/y while headline PPI rose even more (8.4% y/y).  It seems that the inflation pass-through is really starting to bite and will require Banxico tightening next year as well.”