(MENAFN- AzerNews) By
Banxico, Mexico's central bank, on Thursday raised the key
interest rate for the 12th straight time, as risks of accelerating
inflation persist in the short and medium term, reports citing .
The bank's Board of Governors agreed to increase the target for
the overnight interbank interest rate by 75 basis points to 10
percent, effective Friday, according to a statement.
'While some (inflationary) shocks have shown signs of
mitigation, the balance of risks that could impact inflation over
the forecast horizon remains biased to the upside,' Banxico
explained.
'With this action, the monetary policy stance is adjusted to the
trajectory required for inflation to converge to its 3 percent
target within the forecast horizon,' it said.
Banxico estimated that inflation will close at 8.3 percent in
2022, while at the end of 2023 it will be at 4.1 percent.
It added that it will assess the magnitude of upward adjustments
to the benchmark rate according to prevailing circumstances at its
upcoming meetings.
In June 2021, Banxico began a cycle of raising the key interest
rate in view of price increases derived in part from the effects of
the COVID-19 pandemic.
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