In mid-December, Banxico raised its key rate again, by half a percentage point in a split decision and at a slower pace than the previous four.
In the minutes of the last monetary policy meeting, the bank reiterated its position that in the future the entity will assess the need for additional adjustments to the rate and magnitude, in accordance with the prevailing circumstances.
The next monetary policy meeting will be on February 9 and the Banxico Governing Board will be incomplete because President Andrés Manuel López Obrador has not yet appointed the fifth member that is missing after the end of Gerardo Esquivel’s term.
What inflation is expected for Mexico in 2023?
Mexicans will have to suffer high prices for at least two more years. Banxico’s forecasts show that inflation will not return to the 3% target until the last quarter of 2024.
In the latest central bank forecasts, inflation is expected to be 7.5% in the first quarter of 2023, which will drop to 5.9% in the second quarter while in the third and fourth quarters, inflation will be 4.8% and 4.2 %, respectively.
With information from Reuters