Bank of Mexico’s Overnight Interbank Rate Lifted Again

November 12, 2021

Officials at the Bank of Mexico by a vote of four to one authorized a fourth straight 25-basis point hike of the overnight interbank rate to 5.0%. Before the magnitude of global inflationary pressure was understood, the rate last February had been sliced by 25 basis points to 4.0% to culminate 325 basis points of post-pandemic easing. The Governing Board’s goal now is “to facilitate the orderly and sustained convergence of headline inflation to the 3% target within the time frame in which monetary policy operates as well as an adequate adjustment of the economy and financial markets.” Mexican CPI inflation currently is at 6.24% overall and 5.19% for core underlying items.

Copyright 2021, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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