25-Basis Point Hike in Bank of Mexico’s Interest Rate
March 31, 2023
Like the South African Reserve Bank and Central Bank of Colombia, news arrived late yesterday that the Bank of Mexico also was raising its policy rate. The increase of 25 basis points was smaller than earlier moves but lifts the overnight interbank rate to a record high of 11.25% versus a pandemic low of 4.0% between February and June of 2021. The new rate level is well above CPI inflation of 7.6%, but officials do not expect a return to the target midpoint of 3% until late next year.
Copyright 2023, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Mexico
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