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Bloomberg
Mexico’s central bank is ready to tighten monetary policy at a faster pace if needed, according to Governor Victoria Rodriguez Ceja.
The bank increased key rate by half a percentage point for the fourth consecutive meeting and said it was willing to take more “forceful measures†to tame prices. The decision wasn’t unanimous, with one board member voting for a 75 basis-point hike. Any increase bigger than 50 basis points would be most aggressive since the current inflation targeting regime was introduced 14 years ago.
A bigger rate hike is “in no way a certainty†but the statement “opens the possibility†of such a move, she said in a separate radio interview with
Enfoque Financiero.
The bank does not see rising prices as having contaminated inflation expectations, she said in a third interview, with Radio Formula.
President Andres Manuel Lopez Obrador’s pact with major firms to curb price increases of 24 key goods helps lower the balance of risks of inflation and will have some impact but “it will take some time, it will be gradual,†she said.