Bank of Mexico may increase key rate by 25 bps
Mexican central bank, Banxico, is expected to raise its interest rate by 25 basis points (bps) on Thursday, as inflation rates start to slow down. Banxico bank is predicted by 20 analysts to increase the key rate to 11.25 percent, the bank’s 15th hike in a row.
Banxico’s governing board voted unanimously to hike the key rate by 50 basis points to 11 percent in February, amidst the complex inflation crisis, promising a smaller increase in the future.
Banxico raised its interest rate by 700 basis points since it started increasing rates in June 2021.
Consumer prices were less than predicted in March, with an annual headline inflation rate reaching 7.12 percent after being 7.48 percent in February, official data showed on Thursday.
The Mexican central bank is set to take the decision on Thursday, following the U.S. Federal Reserve’s increase of interest rates by 0.5 percent.
