Banxico’s reference interest rate is currently at 6.5% and analysts estimate that it will reach a range of between 8.25 and 8.5% at the end of the year.
The fact that Banxico raises the reference rate implies higher returns for those who have investments in government debt, but it restricts consumption because the cost of credits given by financial institutions rises.
López Obrador said that with economic growth there will be jobs, which in turn will generate peace and well-being in the population. The president ruled out that this plan is a political interest.
The plan to combat inflation will not have coercive measures or price controls, but agreements to guarantee that the basic food basket has a fair price, the president informed.
The plan that was presented by the Secretary of the Treasury, Rogelio Ramírez de la O, contemplates 24 products of the basic basket and is expected to last 6 months.
The official pointed out that “much stronger” economic activity has already begun to be seen at the beginning of the second quarter.
“Yes, we are in line to at least get ahead,” he said.
“It no longer gives us 2.5% growth, but it will improve in the second and third quarters. Inflation impacts expectations of price formation, not necessarily the trajectory of the product,” said Ramírez de la O.
With information from Reuters
