The Bank of Mexico (Banxico) gave the surprise this Thursday afternoon in its monetary policy announcement by raising the reference rate by 25 basis points, to leave it at 4.25%.
The decision was taken by majority, since two members of the Board voted to keep the rate at 4% and this decision was due to the increase in inflation.
The members of the Governing Board said that going forward, the conduct of monetary policy will depend on the evolution of the factors that affect inflation, on their expected trajectories in the forecast horizon and on their expectations.
“Expectations for headline and core inflation in 2021 increased again and those for the medium and long term remained relatively stable at levels above the 3% target,” the Governing Board said in a statement.
“The Governing Board will take the necessary actions based on the additional information, so that the reference rate is consistent with the orderly and sustained convergence of general inflation to the target of 3% in the term in which the company operates. monetary policy, “the Banxico statement highlighted.
After the announcement, the Mexican peso gained ground against the dollar and closed at 19.8090 pesos per dollar.
This Thursday, the Inegi announced that the general inflation of the, double of what was registered in the same period of 2020 and above that expected by analysts. The highest prices were registered in tomatoes and energy such as LP gas and gasoline.
Inflation in the first half of June was the highest since 2002, although it remained below the peak observed last April.
