Mexico would close the year with a rate of 10.5% and it is expected that in 2023 it will still make two more increases in the fight to return inflation to the 3% target.
Estimates also show that Banxico’s reference rate can reach 11%.
Inflation in November slowed down in Mexico to 7.8% although subjacent inflation, which is considered a better parameter to follow the path of the indicator, reported a rate of 8.51%.
Franklin Templeton analysts estimate that it will not be until the third or fourth quarter of 2023 when Banco de México decouples from the measures taken by the Fed and will begin to gradually lower the reference rate.
The members of the Board of Banxico will anticipate in advance when the rate reduction period begins and will avoid surprises.
