Business News Asia
Mexico’s central bank raises interest rates by 0.75% amid fears of rising inflation in the economy. This is the 11th time in a row that it has raised its key interest rate.
The five-member Monetary Policy Committee of Mexico’s central bank voted unanimously to raise Mexico’s interbank overnight rate by 0.75% to 9.25%.
Inflation is expected to reach 8.6% by the end of the year, above the 8.1% expected in August and above the central bank’s target of 3%. Inflation is expected to reach 4% in 2023.
“Global inflation will continue to expand amid the imbalance of supply and demand in various markets, as well as rising food and energy prices,” the Central Bank of Mexico said.
In addition, the Mexican Central Bank expects Mexican economic growth to slow in the third quarter of this year, indicating that the Mexican economy remains in an uncertain environment.