Last week, Banxico raised its interest rate above expectations, to a new record of 11%, its fourteenth consecutive rise, just after learning that the price index accelerated in January to 7.91%.
“The magnitude of these increases has allowed us to reach a tight monetary stance“, Espinosa said, during his participation in a public event in Mexico City, in which he also pointed out that the balance of risks for inflation is biased upwards.
Banxico has increased its key rate by 700 points since June 2021, and even increased the rate by 75 basis points as inflation soared to 8.7%, its highest level in two decades.
As for the performance of the economy, which the market anticipates would grow just 0.98% this year from the 3% preliminary recorded in 2022, the official said that the central bank could eventually adjust its own estimate, which currently stands at a range between 1.0% and 2.6%.
With information from Reuters
