The economist also highlighted that in the event of a contingency, in which the foreign exchange market was severely affected, Banxico could repeat past actions such as auction dollars and avoid volatility.
“At a given moment, the Exchange Commission will have to make the decision if we reach a situation of this type. The truth is that I see it as far away, I do not think it is the case, until now the exchange rate has remained quite stable Hetah highlighted.
The deputy governor added that the central bank does not want to intervene in the foreign exchange market. It was also disclosed that he proposed to the Governing Board his intention to raise the reference rate by 75 basis points last February, when the reference rate rose 50 basis points to 6%.
The next monetary policy meeting will be on March 24, in which analysts expect movements of up to 50 basis points.
‘Premature’ comment on the impact of the Russia-Ukraine conflict
Regarding the conflict between Russia and Ukraine, as well as its repercussions on inflation and energy prices, the governor of Banxico, Victoria Rodríguez, said that it is still premature to assess the impact of this event.
“We will be very attentive to the evolution of the conflict and we know that it could impact the price of energy and grains because these countries are large producers, but we will be very attentive to how it evolves,” Rodríguez pointed out in his first press conference at the head. of the central bank.
The governor pointed out that faced with the possibility of an increase in the prices of raw materials due to this armed conflict, the Bank of Mexico has the obligation to closely monitor the evolution of prices to take care of inflation expectations.
