Banxico raised the interest rate by 75 points in a historic decision to contain high inflation

The Mexican economy faces great challenges in the remainder of the year, according to Banxico’s perspectives. (PHOTO: Susana González/Bloomberg)

The Bank of Mexico (Banxico) raised its target interest rate this Thursday by 75 basis points to stand at 7.75%, to try to deal with high inflation in Mexico, which reached 7.88%.

The 75 points applied this day by Banxico represent the highest increase since 2008, when it began with the instrumentation of its monetary policy through the target interest rate.

This increase decision followed the footsteps of the United States Federal Reserve (FED) last week, so it tries to maintain the same rate differential.

The Governing Board of this institution stressed that the decision was unanimous and that all its members agreed to follow the FED’s guideline. They also anticipated that they could continue the upward cycle during the rest of the year.

The Mexican central bank explained that global inflation continued to rise, in some cases reaching its highest level in decades, pressured by the persistence of bottlenecks, the recovery of demand and the high prices of food and energy.

Information in development…

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