Banco de México would raise its benchmark interest rate by 25 basis points to 5% at its next monetary policy meeting in November, a survey of Citibanamex released today amid persistent inflationary pressures.
The Bank of Mexico (Banxico) at the end of September, for the third consecutive time, it raised the benchmark rate by 25 basis points, to 4.75%. The monetary entity also updated expectations for the consumer price index and projected that it would reach its objective in the third quarter of 2023.
Thirty of the 31 survey participants anticipated an increase of 25 basis points in the next notice of November 11, the penultimate of Banco de México (Banxico) of a total of eight in the year, while only one estimated that the increase will be 50 basis points, Citibanamex said.
Annual inflation in Mexico would have exceeded the official target again in the first half of October, up 6%, a Reuters poll published on Monday showed. The data will be known on Friday.
Banxico has a permanent inflation target of 3% +/- one percentage point.