Reuters reported that the Bank of Mexico hiked its benchmark interest rate by three-quarters of a percentage point to a record rate of 8.5% on Thursday, mirroring the US Federal Reserve's most recent policy decision as inflation surged to an over two-decade high.
The five board members of Banxico, as the central bank is known, voted unanimously for the second 75 basis points rate hike in a row, saying they would "assess the magnitude of the upward adjustments in the reference rate for its next policy decisions based on the prevailing conditions."
- Mexico central bank sets benchmark interest rate at 8.5%.
- Mexico central bank say board was unanimous on rate decision.
- Mexican central bank says the board will assess the magnitude of the upward adjustments in the reference rate for its next policy decisions based on the prevailing conditions.
- Mexico central bank says the balance of risks for the trajectory of inflation within the forecast horizon remains biased significantly to the upside.
- Mexico central bank says the board will thoroughly monitor inflationary pressures as well as all factors that have an incidence on the foreseen path for inflation and its expectations.
- Mexico's central bank says in view of greater-than-anticipated inflationary pressures, forecasts for headline and core inflation were revised upwards up to the third quarter of 2023.
- Mexico's central bank says among key global risks are those associated with the pandemic, the persistence of inflationary pressures, the intensification of geopolitical turmoil, and greater adjustments in economic, monetary and financial conditions.
- Mexico central bank says recent information indicates that during the second quarter of 2022, economic activity grew at a similar rate to that observed during the first quarter, thus continuing its gradual recovery, while slack conditions decreased.
- Mexico central bank says an environment of uncertainty prevails, while the balance of risks remains biased to the downside.
- Mexico central bank sees average annual headline inflation of 8.1% for the fourth quarter 2022.
USD/MXN trimmed the losses of the day and is now printing at 19.9611.