Currently, the benchmark rate is at 5% after the majority of the Governing Board members voted to raise it 25 basis points. As has been happening, Deputy Governor Gerardo Esquivel has become the dissenting vote that has advocated maintaining the rate.
“The Banxico Board has shown evidence of not being in a hurry to accelerate the normalization of monetary conditions and has revealed its intention to continue with its gradual approach,” Alfredo Coutiño, director of analysis for Latin America at Moody’s Analytics told Reuters.
“This is not necessarily what the national inflationary reality requires, which increases the risk of a sharp adjustment as soon as the markets receive a shock from abroad,” he added.
Other analysts have opined that the adjustment of the key rate should be gradual, as has happened, given the weak growth of the economy.
Next Thursday the last monetary policy meeting will be held, led by Alejandro Díaz de León, who ends his term at the head of the central bank on December 31.
So far, Díaz de León has not said if he has plans to join the academy or if he will seek a position in an international body, since in the past he has been recognized as the best central banker.