EconomyMar 25, 2022 08: 25PM ET
© Reuters. Mexico’s Central Monetary institution Governor Victoria Rodriguez Ceja poses for a photo after an interview with Reuters at the annual banking convention, in Acapulco, Mexico March 25, 2022. REUTERS/Javier Verdin
By Anthony Esposito
ACAPULCO, Mexico (Reuters) – The Monetary institution of Mexico doesn’t desire to strictly song the U.S. Federal Reserve’s anticipated hobby charges hike path and can tighten monetary policy at its have tempo because it seeks to curb inflation, the central financial institution governor urged Reuters on Friday.
The 5 board contributors of Banxico, as the central financial institution is notable, voted unanimously to prefer the benchmark hobby rate by 50 basis aspects to 6.5% on Thursday, the seventh hike in a row. It became once also the third straight 50-basis point create bigger.
“We’re undoubtedly eager first of all about the inflation we’re looking at,” Victoria Rodriguez, who took the helm at Banxico in January, stated in an interview on the sidelines of an annual banking conference within the seaside resort of Acapulco.
She notorious the Fed’s policy trajectory became once an “indispensable variable” for Mexico but no longer the most easy one and that inflation has been rising for 15 straight months.
“It is no longer as if beforehand we indulge in now got determined to match one after the other” the Fed’s anticipated rate hikes, Rodriguez stated.
Inflation hit 7.29% within the first half of of March, slightly decrease than the previous two-week duration, but larger than double Banxico’s plan rate of 3%. The financial institution has a one share point tolerance differ above and under the plan.
“We do no longer know yet if we’re going to serve this tempo (of rate hikes) or one other. It will be what is indispensable to indulge in a study our mandate of a 3% inflation plan,” stated Rodriguez.
Rodriguez expects inflation ought to high within the center of the first half of of 2022 and then begin a downward trajectory in the direction of plan within the first quarter of 2024.
On the other hand, risks and uncertainty indulge in risen following Russia’s invasion of Ukraine, which indulge in fueled vitality and grains mark hikes.
“Referring to inflation there would be a essential impact…we would be taking note of what happens and if we peek an impact on inflation we can receive the an indispensable measures,” stated Rodriguez.
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