Banxico raises the rate for the fourth consecutive time by a quarter of a point; remains at 5%

The Governing Board of Banco de México made the penultimate monetary decision of the year and decided to increase the rate by a quarter of a point, in a decision taken by a majority of 4 to one.

The movement, which did not have the vote of Deputy Governor Gerardo Esquivel, left the funding rate at 5%, which is the same level it had in June of last year.

The decision coincided with the average expectation that the market had according to the Bloomberg survey carried out on Wednesday, November 10, where only 8 participants expected an increase of half a point.

In the perspectives that accompany the announcement, the collegiate body reported that it expects for the end of this year a variation of 6.8% per year in the inflation.

The expected inflation rate contrasts with the 6.2% that they only estimated in September and is almost double the forecast they had at the beginning of the year, which was 3.6 percent.

In this announcement, the Governing Board kept unchanged its projection on when the National consumer price index (INPC) with the specific objective of 3% which is the third quarter of the year 2023.

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