The central bank must take measures to control inflation that since March 2021 has been outside the target range, which is 3% +/- one percentage point.
Analysts suggest that Banxico should follow in the footsteps of the Federal Reserve (Fed), the US central bank, which earlier this month raised its rate by 50 basis points.
General inflation registered a level of 7.68% in April, the highest since January 2001. The high prices of food such as chicken, tomato and avocado were among the causes of the rebound
Analysts expect Banxico to continue raising the rate and that this year it will close at 8.5%. This Thursday, May 12, Banxico will announce its monetary policy decision.
Last week, President Andrés Manuel López Obrador announced a plan to try to contain the rise in prices and in the process avoid further increases in the central bank’s interest rate.
“We must try not to raise our rates, of course, the Bank of Mexico is autonomous, they have to decide and we are going to be respectful of autonomy, but the less interest rates rise (it is) the better for there to be investment and let’s have economic growth,” the president said in his morning conference on May 4.
