Banxico again breaks a record: the interest rate has increased by 10%

As expected, the Bank of Mexico decided to raise the interbank interest rate to a level of 10%. These effects, the institution announced, will take effect from November 11. It won’t be the last increasebecause we expect there to be a a d more related to Politics monetary of the nation for the month of December.

The increase consisted of raising the measure that fixes the price of silver by 75 basis points. This measure will affect people who obtain new credit or who have variable interest credit. This move follows the pattern of Banxico’s last 12 indicator-related announcements in 2022.

“The board of directors has assessed the magnitude and diversity of the shocks that have affected inflation and its determinants, as well as the evolution of medium and long-term expectations and the price formation process”, thus defended the instituting this resolution.

According to Banxico, this decision was taken to be able to act against the inflation caused by the vestiges of the economic crisis derived from the coronavirus pandemic, as well as by the conflict between Russia and Ukraine and the world panorama that has arisen. ended in conflict in the global supply chain.

A light behind the tunnel

Economist Gabriela Siller published information via her Twitter account that could give hope to the Mexican market. According to the specialist, the statement from the Bank of Mexico “seemed less restrictive”, although it took into account the risk that inflation would continue to rise.

According to the expert, the indicator has a marginal decline, although core inflation will rise slightly, according to projections. That would see the country end up with that figure, which is still well above the three percent the government sets as its annual maximum target.

However, a few hours before the specialist indicates data related to inflation in the United States, which has been decelerating for four months, which would have a positive effect on Mexico. The biggest obstacle for this to continue, he assured, is that the supply chain problem and the war between Vladimir Putin and Volodímir Zelensky continue.

Author: Editorial The digital herald
Source: El Heraldo De Mexico