The official pointed out that the trajectory of the Fed’s monetary policy is an “important element” for Mexico, but not the only one.
“It is not that, a priori, we intend to follow it one by one (the hikes expected from the Fed),” Rodríguez added.
In recent months, inflation in Mexico has hovered around levels not seen since 2001. In the first half of March it was 7.29%, slightly lower than the previous fortnight, but roughly double the bank’s target rate. central 3% +/- one percentage point.
“We would not know yet if we are going to continue with this rhythm (of rate hikes) or with some other one. I would tell you that with what is necessary to comply with our mandate of maintaining the 3% target,” he added.
Rodríguez expects inflation to peak during the first half of 2022 and then begin a downward trajectory toward the target in the first quarter of 2024.
However, risks and uncertainty have increased following Russia’s invasion of Ukraine, leading to increases in energy and grain prices.
“As for inflation, there could be significant impacts. We are going to be attentive to what could happen and if we see any impact on inflation, we will take the necessary measures,” he said.
The official assured that Banxico’s autonomy “has never been in doubt” after President Andrés Manuel López Obrador disclosed, before an official announcement, the institution’s monetary policy decision, a revelation that caused a stir in the country.
