The Bank of Mexico (Banxico) raised the interest rate on Thursday, February 9th, by 50 base points to 11 percent, the highest level in its history, which represents the fourteenth consecutive increase in the face of the highest inflation levels in two decades.
“The Governing Board evaluated the magnitude and diversity of the shocks that have affected inflation and its determinants, as well as the evolution of medium- and long-term expectations, and the price formation process,” the central bank said in a statement.
The 50-point increase, the second consecutive increase of this level after four previous increases of 75 points, was approved unanimously and contrasted with the 25-point increase announced by the US Federal Reserve (Fed) last week.
Source: El Financiero
