AMLO recommends Banxico technicians to think differently to reduce inflation


President Andres Manuel Lopez Obrador said this Friday morning that the technicians of the Bank of Mexico (Banxico) should think differently to reduce inflation after the increase on the eve of the key rate and advocated looking for other options to reduce inflation.

López Obrador questioned this Friday the tactic of the central banks of raising interest rates to contain inflation and announced that he will soon ask his colleague from the United States, Joe Bidena joint anti-inflationary plan on which he did not give further details.

“I respect the autonomy of the Bank of Mexico, but the technicians should already think of another formula, because they are not only the technicians of Banxico, they are those of the Treasury, of all the central banks in the world,” he said. AMLO in his usual morning conference.

The Banxico followed in the footsteps of the Federal Reserve (Fed) and increased its interest rate by 75 basis points, leaving it at a level of 7.75 percent.

This is an increase that has never been seen since the central institution, today in charge of Victoria Rodriguez Cejaadopted the interest rate as an operational objective in 2008, in addition to being the highest level for it since November 2019.

“Since 2008, 127 monetary policy decisions have been made. During this period, the reference rate has been increased 27 times; 16 times at 25 basis points, 10 times at 50 basis points and now, for the first time, at 75 basis points,” he posted on social media. Jonathan Heathdeputy governor of Banxico.

With this decision they add up to nine consecutive increases in the Banxico interest ratewhich has intensified due to the persistence of high levels of inflation both in Mexico and the rest of the world, which is putting household income and the recovery of the economy in check.

(With information from Belén Saldívar)



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