No menu items!

Mexico’s central bank raises interest rate to all-time high

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.

, Mexico’s central bank raises interest rate to all-time high

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.

 

Check out our other content