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EconomyMar 25, 2022 08: 25PM ET
© Reuters. Mexico’s Central Financial institution Governor Victoria Rodriguez Ceja poses for a picture after an interview with Reuters on the annual banking conference, in Acapulco, Mexico March 25, 2022. REUTERS/Javier Verdin
By Anthony Esposito
ACAPULCO, Mexico (Reuters) – The Financial institution of Mexico would no longer want to strictly note the U.S. Federal Reserve’s expected hobby charges hike direction and can tighten monetary coverage at its hold tempo because it seeks to curb inflation, the central bank governor suggested Reuters on Friday.
The 5 board participants of Banxico, because the central bank is identified, voted unanimously to desire the benchmark hobby price by 50 foundation aspects to 6.5% on Thursday, the seventh hike in a row. It modified into also the third straight 50-foundation point develop.
“We are unnecessary to snarl alive to to begin with referring to the inflation we’re watching,” Victoria Rodriguez, who took the helm at Banxico in January, said in an interview on the sidelines of an annual banking conference within the sea hotfoot resort of Acapulco.
She eminent the Fed’s coverage trajectory modified into an “necessary variable” for Mexico nevertheless no longer the very top one and that inflation has been rising for 15 straight months.
“Or no longer it is far no longer as if beforehand we now possess determined to compare one after the opposite” the Fed’s expected price hikes, Rodriguez said.
Inflation hit 7.29% within the principle half of March, moderately decrease than the previous two-week length, nevertheless more than double Banxico’s procedure price of 3%. The bank has a one share point tolerance vary above and under the procedure.
“We include no longer know yet if we’re going to make a choice this tempo (of price hikes) or one more. It will likely be what’s serious to follow our mandate of a 3% inflation procedure,” said Rodriguez.
Rodriguez expects inflation ought to peak all around the principle half of 2022 after which birth a downward trajectory in direction of procedure within the principle quarter of 2024.
Nonetheless, risks and uncertainty possess risen following Russia’s invasion of Ukraine, which possess fueled energy and grains tag hikes.
“Regarding inflation there can also merely also be a predominant affect…we would be taking note of what happens and if we watch an affect on inflation we can make a choice the needed measures,” said Rodriguez.
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