MEXICO CITY (AFP) – Mexico’s central bank on Thursday announced another increase in its benchmark interest rate to a record high of 11 per cent, saying inflation was taking longer than expected to fall.
The governing board’s decision to raise the interbank rate by half a percentage point was unanimous, the Bank of Mexico said.
It was the 14th consecutive hike aimed at slowing consumer price rises that reached the fastest pace in more than two decades last year.
“Among key global risks are those associated with the pandemic, the persistence of inflationary pressures, the intensification of geopolitical turmoil, and tighter monetary and financial conditions,” a statement said.
The central bank raised its inflation forecasts, saying that headline inflation in Latin America’s second-largest economy had crept back up to 7.91 per cent in January.
It expects inflation to remain above the official three per cent target through 2024.