Jonathan Heath sees more moderate hikes in Banxico's rate

Jonathan Heath sees more moderate hikes in Banxico’s rate

The participants in the survey maintain the expectation that the central bank’s reference rate will close the year at 10.50%. While, for next year, analysts consider that the interest rate will be 10.38%, when in the previous survey they expected 10%.

“We think we can maybe start to slow the rate (of increases) now, but continue to increase it because we’re getting closer to what I think could be a terminal rate,” Heath told reporters at an event.

Since the central bank began its cycle of increases in the reference interest rate, in the middle of last year, it has raised the cost of credit by a total of 600 base points, up to its current level of 10%.

Last week, the president of the Federal Reserve (Fed) of the United States, Jerome Powell, reported that the central bank could reduce the pace at which it is raising interest rates in the fight to bring inflation down to the 2% target.

With information from Reuters

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