Banxico closes 2022 raising the interest rate to a record of 10.5%

Banxico closes 2022 raising the interest rate to a record of 10.5%

The Bank of Mexico followed the same path that the Federal Reserve (Fed) took this Wednesday, which was less aggressive in its monetary policy and raised 50 points your interest rate .

The members of the Governing Board said in the announcement that the global challenges for inflation are those related to the pandemic, the prolongation of inflation risks and the aggravation of geopolitical tensions.

In addition, they said that there will be more rate increases at the next meeting. “The Governing Board considers that it will still be necessary to increase the reference rate at the next meeting. Going forward, it will assess the need for additional adjustments in the reference rate and their magnitude in accordance with the prevailing circumstances.”

General inflation slowed down in November with a rate of 7.8%; core inflation also registered a decrease and this was due to the offers and promotions of the Good End.

New forecasts for inflation

Banxico improved its inflation outlook for the fourth quarter of 2022 and the first quarter of 2023.

The central bank estimates that in the fourth quarter of this year, inflation will be 8.1% from a previously estimated 8.3%, the data was benefited by the inflation registered in November.

For the first quarter of 2023, Banxico estimated that inflation will be 7.5%, a marginal decrease from a previously estimated 7.6%.

For the following quarters, it is estimated that inflation will remain high and that it will converge to the target until the fourth quarter of 2024.

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