“Adjustments to the reference rate, when macroeconomic conditions permit, will be gradual. And I want to emphasize again that the reference rate we set will be consistent at all times with the path required,” said Rodríguez in the presentation of the quarterly report for the period from April to June.
The governor said that the inflationary environment will allow for the discussion of adjustments to the reference rate and in view of the expectation that global shocks will dissipate.
Deputy Governor Jonathan Heath noted that there are risks to the inflationary path and said he expects non-core inflation to help inflation converge to the target.
“We are most likely going to see a downward trajectory in the non-core portion, which will be crucial to getting close to 4% by the end of this year,” Heath said.
But the challenge remains core inflation, which is what impacts monetary policy, as Hetah sees challenges in the performance of services inflation.
“I think that if we want to see progress in the underlying part between now and the end of the year, we now have to see a clear break in the persistence of inflation in services, which has not yet shown a downward trend and is still above 5%,” added Heath.
Autonomy is not in danger
Regarding the implications of President López Obrador’s Plan C, which seeks to eliminate some autonomous bodies, the members of the Board consider that the central bank is not in danger since there is no initiative on the table that seeks to modify the autonomy of the central bank.
“We do not see a proposal on the table in this regard, I would emphasize the fact that both President López Obrador and the president-elect have explicitly mentioned their intention not to modify the issue of the autonomy of the Bank of Mexico,” Rodríguez said.
