The deputy governor of Bank of Mexico Jonathan Heath said this Friday that there is still “ground to cover” in the monetary stance so that it is consistent with the panorama of the inflation in the country.
The central bank this week raised the key interest rate by 50 basis points to try to deal with high levels of inflation and emulating a similar increase in the cost of credits from the Federal Reserve American last week.
Heath affirmed that with the rise of half a percentage point the monetary stance “reenters the neutral zone” but there is still a way to go given the levels of inflation in Mexico.
“I think that the position consistent with the current inflation scenario should be restrictive, so there is still a long way to go,” the deputy governor said on his Twitter account.
For now, by increasing the monetary policy rate by 50 basis points, the monetary stance returns to the neutral zone. I think that the position consistent with the current inflation scenario should be restrictive, so there is still a long way to go. pic.twitter.com/8Wnvj8DplC
— Jonathan Heath (@JonathanHeath54)
May 13, 2022
Inflation accelerated in April to levels not seen in more than 21 years at 7.68% at the interannual rate, while core inflation, considered a better parameter to measure the trajectory of prices because it eliminates high volatility products, registered a variation of 7.22%, also the highest since January 2001.