Mexico’s central bank (Banxico) raised its key interest rate for the sixth consecutive time at its latest monetary policy meeting on Thursday (Feb. 10) as inflationary pressure in the country is high and has persisted longer than expected.
The Monetary Policy Committee of the Mexican Central Bank has decided to raise the key interest rate by 0.50% to 6%, effective today (February 11).
According to the Mexican Central Bank, headline inflation jumped to 7.07% in January from a year earlier.
Mexico’s central bank also raised its forecast for headline inflation to 4% by the end of this year and 3.1% by the end of 2023. The previously targeted inflation of 3% has been adjusted and has risen to its highest level in 20 years, mainly due to the spread of COVID-19.
Mexico’s central bank notes that global inflation continues to rise due to pressures from the production bottleneck and high food and energy prices.