The Bank of Mexico (Banxico) considers that inflation pressures “are easing”but uncertainty still persists, as revealed on Thursday by a minute of its Governing Board.
“Everyone thought that the inflationary outlook remains complex and uncertain, although they recognized that some pressures are easing. Most detailed that the pressures coming from abroad have diminished,” the central bank report said.
The members of the autonomous body agreed that “annual headline inflation has decreased”Therefore, “the majority mentioned that Banco de México’s forecasts for headline and core inflation adjusted marginally“.
This minute contrasts with the one published on February 23, when the Governing Board considered the permanence of high levels of inflation in the country “worrying” and warned of “a greater persistence than expected.”
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Now “the majority argued that inflationary pressures are expected to continue to ease going forward”.
The report corresponds to the meeting of March 30, when the Governing Board raised the interest rate by 25 basis points to 11.25%, the highest level in its historywhich represents the fifteenth consecutive increase, although more moderate than the two previous increases of 50 points and four of 75 points.
In the session, Banxico foresaw that headline inflation averages 4.8% per year in the last quarter of 2023 after the previous expectation of 4.9%, while for the end of 2024 it maintained the expectation at 3.1%, a level close to its goal of 3 percent.
The minutes are released a week after reporting that general inflation decreased in March 6.85% annualits lowest level since October 2021, after an index of 7.62% in February, 7.91% in January and 7.82% last December, when inflation had its biggest annual close in 22 years.
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