The war against inflation in the country intensified this Thursday after the Bank of Mexico ( Banxico ) decided for the second consecutive time and unanimously to raise its reference interest rate by 75 basis points , to place it at 8.50 %, a level never before recorded by the central bank.
In July, prices had their strongest rebound in 21 years, touching an annual rate of 8.15%, a figure very far from the 3% +/- one percentage point that the entity governed by Victoria Rodríguez is targeting.
Banxico is losing the battle against inflation, as analysts estimate that credit costs will continue to rise in the remainder of the year and that prices have not yet reached their maximum level.
In its statement from the meeting of the Governing Board, the central bank warns of greater challenges for the conduct of monetary policy in the face of the tightening of global financial conditions, the environment of heightened uncertainty, the accumulated inflationary pressures of the pandemic and the conflict geopolitical, and the possibility of greater effects on inflation.
The forecasts for inflation this year and the first half of 2023 also underwent changes.
Banxico estimates that in the fourth quarter of the year, inflation will close at 8.1% from a previous estimate of 7.5%. For the fourth quarter of 2023, inflation is expected to drop to 3.2%
With the restriction of monetary policy, it will be more expensive for the Government and for individuals to request financing, in addition to those with variable interest rate loans who would see an increase in their debt collection. These factors will cause consumption to be depressed.
But, if you are a saver, this trend can benefit you, since you will have a higher rate for keeping your money in financial institutions.
