At the beginning of August, Banxico left the reference interest rate at a record high of 11.25% for the third time in a row, citing a still complex inflationary outlook.
Among the upward risks for inflation, the members of the board agreed on the persistence of the underlying component at high levels, according to the meeting document, released on Thursday.
The consumer price index slowed in the first half of August for the seventh consecutive fortnight, to 4.67% at the annual rate, its lowest level since March 2021, while core inflation stood at 6.21%.
Even so, the board estimated that inflation would converge to the target in the fourth quarter of next year, despite the fact that the outlook looks “complicated and uncertain” throughout the entire forecast horizon, with upside risks.
“Everyone agreed that the balance of risks with respect to the trajectory expected for inflation in the forecast horizon remains biased upwards,” he highlighted.
Regarding economic growth, the monetary entity highlighted that local productive activity has shown resilience.
The Mexican government expects the local Gross Domestic Product (GDP) to grow at least 3% this year.
With information from Reuters