Breaking news: Banxico raises interest rates by 75 basis points, hits 9.25%

The Bank of Mexico has announced the economic policy that will serve to counter the inflation that the country is facing. This behavior of the indicator is the highest of the last 20 years.

The decision led to a 75 basis point increase in the interest rate, with which the indicator reached 9.25%.

Since yesterday, gabriel wake upDirector of Economic analysis of the basic financial groupestimated that the increase would lead to a 75 basis point increase in the indicator, putting it at 9.25%.

This, he commented via his account Twitter, would lead the peso to quote between 20.20 and 20.30 pesos for each dollar. He also added that this would imply that any stage of the United States Federal Reserve causes Mexico to end 2022 with an interest rate of 10.50%.

All this would not be bad news, because it is expected that by 2023 there will be a slight recovery which will see a 6% increase in this position in the country led by Joe Biden and up to 12% for Mexico at the end of next year.

AMLO worries about inflation

Noting that with the strengthening of the Inflation and Famine Package (pacic) could even drive down product prices, President Andres Manuel Lopez Obrador He said that his main concern, the first in economics, was inflation.

He specified that with the reinforcement plan of the PACIC which will be presented Monday morning, the rise in prices of 24 products of the basic basket will be stopped.

“We are already working and this plan will be presented on Monday and I am sure that we can stop the price increase,” he stressed.

He claimed that inflation is a global phenomenon accelerated by war, which is why Mexico is proposing a truce.

The President recalled that after the meeting he had with businessmen from the food sector, distributors and producers, it was decided that the price of the basic food basket will not increase.

“We will even try to lower the prices and this plan will be presented next Monday,” he promised.

He said the group of businessmen, industrialists and traders had a positive response to his proposal to deal with inflation. He added that another of the measures his government has implemented is the fuel subsidy.

“I have a particular attention, I give a particular follow-up to this affair… If they ask me, what worries you these days, your main concern, the number one in economics? Inflation and that’s why we are acting,” he said.

How does the interest rate affect your pocket?

Also known as the price from silverthis indicator corresponds to the Percentage who must be paid for the use of this resource or for the performance of an economic operation.

That is to say, anyone who applies for financing or buys a service banking You must pay a fee for this, which is regulated by means of this tax which is intended for the account of the person who deposited the money.

It directly affects sectors like him credittherefore the higher the indicator, the more the beneficiary will have to pay to use it.

In the case of variable rate debt, what remains of this debt figure to be paid is subject to the new conditions, which results in an increase in the amount to be paid at the end. This usually occurs in large financings such as those granted when purchasing automobiles That is Houses.

At the same time, these increases are usually led by the Company That is suppliers of services to their prices, which indirectly causes prices to rise in certain sectors.

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