Bank of Mexico board member Jonathan Heath said on Friday that given the inflation outlook, there is still a “way to go” on tightening monetary policy, following the central bank’s latest 50 basis points rate hike to 7.0% this week.
“By increasing the monetary policy rate by 50 basis points, the monetary stance returns to neutral territory. I think the stance consistent with the current inflation scenario should be restrictive, so there is still a way to go,” he said on Twitter.
Banxico, as Mexico’s central bank is known, has increased its benchmark rate by 300 basis points over the last eight monetary policy meetings as it struggles to get inflation to its target of 3%, plus or minus one percentage point.
In a hawkish statement on Thursday, Banxico said that given the complex outlook for inflation “taking more forceful measures to attain the inflation target may be considered.”
Source: El Financiero
Mexico Daily Post