Banxico raises the interest rate to 5% amid high inflation

The Bank of Mexico (Banxico) raised the interest rate to 5% on Thursday, representing the fourth consecutive increase of 25 basis points from the target amid the highest inflation since 2017.

The central bank’s Governing Board approved this decision with a vote in which four members supported the new rate and only one of them, Gerardo Esquivel, was in favor of keeping the rate at 4.75%, a position similar to that of that of your other votes.

“It was considered necessary to continue strengthening the monetary stance, adjusting it to the path required for inflation to converge to its target of 3% within the forecast horizon,” the board argued in its statement.



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