Bank of Mexico Minutes Show Majority Willing to Consider Bigger Rate Increases
The bank raised its overnight rate target by a half percentage point to 7% in mid-May. Minutes of the meeting reiterated that the bank might weigh ‘more forceful measures’ to clip inflation.
MEXICO CITY—A majority of the Bank of Mexico’s board members agreed they should at least consider stepping up the size of interest-rate increases to tame inflation and to keep price expectations from becoming overblown, minutes to this month’s meeting showed.
The central bank board voted 4-1 on May 12 to raise the overnight interest-rate target by a half percentage point to 7%, in line with market expectations, with Deputy Gov. Irene Espinosa voting to increase the rate to 7.25%
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Source: Wall Street Journal