MEXICO CITY (Reuters) – Minutes of the Bank of Mexico’s August 11 monetary policy meeting, released on Thursday, highlighted the possibility of a rate hike at a future meeting- determined magnitude.
As we all know, Banxico, Mexico’s central bank, raised the country’s benchmark interest rate by 75 basis points at its August meeting in an effort to slow the rise in inflation . Compared to the last 10 monetary policy meeting, it increased by a total of 450 basis points.
“The board added that it will evaluate the reference rate hike based on the current situation to make the next policy decision based on the current situation,” the minutes said.
At the meeting, board members said that expectations for 2022 headline and core inflation have risen again.
Overall inflation for the whole year rose to 8.62% in the first half of August, much higher than Banxico’s Target 3%, plus or minus one percentage point.
While bank members added that consumption continued to recover in the May-June period, uncertainty about the economic recovery remained.
Most board members do not expect inflation to converge to the bank’s 3% target until 2024 the first quarter.