Since Banxico began its current rate hike cycle in June 2021, it has increased it by 700 basis points to 11.25%, and analysts anticipate a new increase in March.
“I think that going forward it could be considered to decrease the rate adjustment rate, since it is already very close to the appropriate level to consolidate a disinflationary process,” said the official in an interview with the Grupo Financiero Banorte podcast released on Wednesday.
The President of Mexico, Andrés Manuel López Obrador, has highlighted the importance of finding a balance between the fight against inflation and economic growth.
“We anticipate that economic activity in Mexico will continue to expand,” added Mejía, despite the restrictive monetary policy and a global slowdown that, he added, seems less pronounced than initially forecast.
The deputy governor indicated that although the reduction in inflation was taking longer than expected, he still expects it to reach the central bank’s target in the fourth quarter of 2024, adding that the persistently high core component remains the main inflationary challenge. from the country.
Annual headline inflation in the first half of February stood at 7.76%, while the core index, which strips out some volatile food and energy prices, reached 8.38%, well above the central bank’s target of 3 % +/- one percentage point.
Mejía’s stance, confirmed as a Banxico board member in January, is in line with most central bank board members, who, according to a recent meeting, are considering a more moderate rate hike at the next meeting. of monetary policy on March 30.
