Bank of Mexico hiking cycle seen ending with key rate at 11% -Franklin Templeton

The facade of the Bank of Mexico building is pictured in downtown Mexico City, Mexico February 28, 2019. REUTERS/Daniel Becerril/File Photo

MEXICO CITY, Dec 8 (Reuters) - Mexico's central bank's monetary policy tightening cycle will likely end in the first half of 2023 with the benchmark interest rate at 11%, before policymakers start to gradually ease rates, a Franklin Templeton executive said on Thursday.

Banxico, as the Mexican central bank is called, has increased the key rate by 600 basis points to 10.0% since the middle of 2021 to combat rising inflation.

"We believe the terminal rate is going to be at 11% in the first half of 2023," Luis Gonzali, co-chief investment officer of Franklin Templeton's Mexico unit, said during an event with reporters, adding that Banxico will then start to lower rates.

Reporting by Noe Torres; Writing by Valentine Hilaire

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