Mexico City.- Given the decrease that core inflation is already showing and the monetary stance achieved, the Bank of Mexico (Banxico) could consider halting increases in its reference rate at its next monetary policy meeting in May, said Victoria Rodríguez Ceja, Governor of the institute .
Headline inflation began to decline since August of last year and core inflation is already showing positive signs of reduction, he noted.
“Given these positive signs and the monetary position already achieved, we will be evaluating the possibility of halting the rate,” he declared in an appearance before the Senate Finance and Public Credit Commission.
In the first half of this month, headline inflation stood at 6.24 percent annually, its lowest rate since October 2021, and core inflation reached 7.75 percent, 0.28 points less than in the second half of March, according to the Inegi.
Although it is possible to evaluate a stop to the increases in the reference rate of Banxico, which currently stands at 11.25 percent, Rodríguez Ceja clarified that the possibility of approving the next monetary policy meetings has not yet been discussed. cuts to it.
“We need to consolidate the decrease in the inflation rate and we will be evaluating the inflationary panorama in each of the decisions,” he emphasized.
Rodríguez Ceja recalled that the cycle of increases began in June 2021 and since then, increases in the central bank’s reference rate have accumulated, totaling 725 points.
On the other hand, he emphasized that the objective of Banxico’s monetary policy is price stability.
“Consequently, there is no target for the exchange rate or the rate differential over other economies,” he added.
