The governor of central bank of Mexico (Banxico)Victoria Rodríguez, considers that the downward adjustments in the rate key of the entity could be gradual and will depend on the behavior of the inflationaccording to an interview published on Monday in the newspaper El Financiero.
Banxico decided last week to maintain its reference interest rate at the historical maximum of 11.2%, anticipating that it will remain at that level for “some time” because there are challenges for inflation despite its deceleration.
Rodríguez said in the interview that the entity continues to see if the possibility of adjusting the rate.
“We know that there are still challenges. Inflation has dropped significantly, but we need to be cautious. When downward adjustments occur, we are anticipating that they would be gradual. The decisions we make must continue to be such that they keep us on a sound monetary stance so that we achieve convergence of the inflation”, express.
Inflation in Mexico
In the midst of rising inflation in the country and internationally, Banxico took the key reference rate to a historic high of 11.25% in March, a level it has maintained in the following five monetary policy decisions, the last of them on Thursday.
Inflation stood at 4.3% in November, above the 4.2% of the previous month, when it reached its lowest point since February 2021, while the inflation underlying continued to moderate, and Banxico has warned that it will maintain the reference rate at the current level still “some time”.
Source: Gestion
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