Banxico maintains rate at 11%

by times news cr

2024-07-04 06:50:38

The Governing Board of the Bank of Mexico (Banxico) announced the decision to keep the reference rate unchanged at 11%.

The exchange rate remained stable without any problems at 18.40after it was expected that the pause in the Mexican rate would continue.

In the message, the Mexican central bank sent the signal that the inflationary risk due to the depreciation of the peso is countered by the economic slowdownwhich leaves the door open to interest rate cuts in the coming months.

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Although some members were betting on the cut, the inflationary rebound announced yesterday in the first half of June upon reaching 4.78% It was decisive for Banxico economists.

In its statement, the Bank of Mexico said that there was a depreciation of the peso in the first days of Claudia Sheinbaum’s victory and due to the fear of constitutional reforms, but now as the days went by the exchange rate of our currency improved, “More recently, domestic markets have performed better”.

“Although the depreciation of the national currency has an upward influence on the inflation forecast, its effects are partly offset by the corresponding effects of the greater weakness of economic activity,” he said.

2024-07-04 06:50:38

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