Bank of Mexico (Banxico) will continue to raise its target rate and could take it up to 8.50 points by the end of the year, estimated the deputy director of economic analysis at Go for MoreAlejandro Saldana Brito.
This forecast incorporates the forecast of a new increase of 50 basis points in the rate, for the meeting this afternoon of the Board of Governors of Banxico, given the persistent risks of contamination of expectations and to respond to the impact that the tightening has on the market. of US monetary policy.
At a press conference to update his expectations, he explained that this new forecast on the rate that the country will have at the end of the year, it is far from the 7% they had forecast in Januaryand responds to the significant deterioration in the inflation outlook.
This upward trend in the Mexican rate will allow to take the real rate to a positive level that is, it will seek to get out of the expansive position to take a neutral approach.
Regarding economic activity, he considered that even showing greater resistance to the latest wave of contagion, it is exposed to the effects of the latest global disruptions, such as the war between Russia and Ukraine, as well as inflationary pressure, higher world interest rates and lower expected growth in the United States.
Thus, they revised down their GDP projection for this year to leave it at 2% from the 2.6% they had in January.
