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Mexico central bank raises benchmark interest rate to 9.25% from 8.50%
The Mexico central bank, Banxico, said the board was unanimous on the rate decision where it raised the benchmark interest rate to 9.25% from 8.50%.
Key notes
- Says the balance of risks for the trajectory of inflation within the forecast horizon remains biased significantly to the upside.
- Says the board will thoroughly monitor inflationary pressures as well as all factors that have an incidence on the foreseen path for inflation and its expectations.
- Says the board will assess the magnitude of the upward adjustments in the reference rate for its next policy decisions based on the prevailing conditions.
- Says an environment of uncertainty prevails, while the balance of risks for economic activity remains biased to the downside.
- Says the accumulated inflationary pressures associated with both the pandemic and the military conflict continue affecting headline and core inflation.
- Sees average annual headline inflation of 8.6% for the fourth quarter of 2022.
Meanwhile, USD/MXN is 0.25% bid on the day at 20.1570.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
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