The central bank estimates that in the last quarter of this year, the inflation will slow down to 4.7% and it will be until end of 2024 when it converges to the goal that is 3%.
Last week, Banxico kept unanimously the Reference rate in 11.25% and stressed that this level should remain for a long time.
Espinosa stressed that the decision of lower the reference rate will be subject to the evolution of the inflation. “As expectations and inflation start to come down and come down below what we anticipate, there would be room to lower the rate,” he said.
However, that scenario it seems “unlikely” Given the high levels of Underlying inflation and with a phenomenon of persistence.
the lieutenant governor Jonathan Heath said it is preferable have a actual rate between 6% and 7% to make monetary policy achieve its disinflation target.