Mexico’s central bank Banxico said the board of directors was unanimous on the rate decision, raising the benchmark interest rate to 9.25% from 8.50%.
key notes
- It says that the balance of risks to the path of inflation within the forecast horizon remains significantly biased to the upside.
- He says that the board will closely monitor inflationary pressures, as well as all factors that affect the expected path of inflation and its expectations.
- It says the council will assess the size of the benchmark rate hikes for its next policy decisions based on prevailing conditions.
- He says that an environment of uncertainty prevails, while the balance of risks for economic activity remains biased to the downside.
- It affirms that the accumulated inflationary pressures, associated with both the pandemic and the military conflict, continue to affect headline and core inflation.
- It forecasts average annual headline inflation of 8.6% for the fourth quarter of 2022.
For its part, the USD/MXN is in a 0.25% supply on the day at 20.1570.
Source: Fx Street
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