MEXICO CITY (Reuters) – A board member of Mexico’s central bank tweeted (NYSE: TWTR) on Monday.
“The Fed is going to keep going higher for a while until it starts to see results, and we’re going to have to do the same,” said board member Jonathan Heath.
Heath acknowledged that inflationary pressures are being felt around the world, but said there are certain qualities of the Mexican economy that complicate matters, noting what he called low competitiveness in “many areas” .
“Restrictive monetary policy will not solve this problem, but it can help limit it,” Heath said.
Monetary policy consistent with current inflationary pressures should help mitigate second-round effects, he added.
Otherwise, the problem risks getting worse and cementing the real problem of fueling inflation, Heath said.