The Board of Governors of Mexico’s Central Bank (Banxico) voted unanimously to raise interest rates to a record high of 9.25%.
This marks the third consecutive 0.75 percentage point increase in the key interest rate to curb inflation by the unanimous vote of its five members.
Given the “environment of heightened uncertainty, accumulated inflationary pressures from the pandemic and the geopolitical conflict, and the possibility of greater effects on inflation (…) [the Governing Board] unanimously decided, in the presence of all of its members, to raise the target for the overnight rate by 75 basis points to a level of 9.25%,” the state bank said in a statement on its monetary policy decision.
The interest rate has never been this high in Latin America’s second-largest economy since the Mexican monetary authority introduced the instrument as an operational target in 2008.