Mexico Central Bank has recently announced its decision to raise its benchmark interest rate by 25 basis points to 8%. Below are some key highlights from the policy statement, via Reuters.
- Balance of risks to growth from a cyclical perspective continues tilted downwards.
- Balance of risks to expected trajectory for inflation has deteriorated and shows an important upward bias in environment of marked uncertainty.
- Board was not unanimous on rate decision.
- Monetary policy should respond with prudence if economic uncertainty increases considerably.
- One member voted for 50 basis point increase.
- Peso exchange rate was affected by the announced cancellation of the new Mexico City airport and concerns about policies of the new administration, legislative initiatives.
- Will take necessary actions, in particular holding or possibly strengthening current monetary policy to reach inflation target.
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