Core inflation, which excludes volatile elements such as fuel, stood at 5.67% compared to a year earlier. The board of the central bank, known as Banxico, is expected to announce its fifth consecutive quarter-point hike in interest rates next week. which would bring the overnight interest rate to 5.25%. Minutes from the bank’s last meeting show that one member said a half-point hike was needed, but that it could disrupt markets.
However, Finance Undersecretary Gabriel Yorio said this week that he did not expect a 50 basis point increase. There has been a debate among the board members as to whether the current price shocks are transitory; in fact, the four hikes since June have been decided by divided vote.
Mexico’s monetary policy is still on accommodative ground and must respond decisively to inflationary pressures, Irene Espinosa, a member of the Banxico board, said in a Banorte podcast interview published Wednesday. The bank’s gradual approach to monetary policy has allowed for an orderly adjustment of the economy and financial markets, he also noted.
The monetary policy meeting on December 16 will be the last with Alejandro Díaz de León at the head of Banxico. He will be replaced by Victoria Rodríguez Ceja, who will become the first governor of Mexico’s central bank in 2022. Tomorrow the US inflation index will be released.
Source From: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
