Reuters.- The Bank of Mexico (Banxico) will raise its benchmark interest rate by 50 basis points to 6% at its next monetary policy meeting in February, analysts say for a survey by the financial group Citibanamex released on Tuesday, amid persistent inflationary pressures.
The central bank raised the key rate by 50 basis points last week to 5.50% in a split decision, citing a deterioration in forecasts for inflation. It was the fifth consecutive increase.
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88% of the institutions participating in the survey estimated that the next movement of the benchmark rate will occur in the monetary decision of February 10, with a narrow majority anticipating a rise of 50 basis points, Citibanamex said.
Local inflation accelerated more than expected in November to 7.37%, its highest level since early 2001.
According to a Reuters poll among specialists, they predict that inflation in the country continued to accelerate in the first half of December, reinforcing expectations that Banxico will continue to raise its benchmark interest rate next year.
The median of the projections of 11 specialists showed a rate of 7.73% for biweekly inflation, compared to that of the second half of November, of 7.70%. If the projection materializes, it would be the highest record since the second half of January 2001, when it was 7.86%.
Banxico has a permanent inflation target of 3% +/- one percentage point.
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