The minutes of the monetary policy decision meetings of the Banco de México Governing Board are a puzzle in which market participants have to imagine which of those who have the right to vote said what in those anonymous texts.
There are central bankers who are highly transparent and whose names jump out on every line of the 10 pages of the document that condenses their ideological arguments for making their decision.
There it is, in this minute 92, the one who defends that Mexico has not supported its population with emerging programs in the middle of the economic crisis due to the pandemic because that way Mexico does not have a problem of excess demand due to the lack of monetary stimuli and that limits , he says, inflationary pressures.
That same central banker is against rapidly increasing the interbank rate because that affects economic activity. He asks for caution in this cycle of hikes, as if Banxico had a dual objective, which it does not have.
There are two members of the Governing Board who clearly spoke out for a faster increase in the cost of money, to project that strong signal that a central bank that has the primary, and almost sole, objective of combating inflation must send.
Thus, two bankers spoke out for increasing the reference rate by 75 basis points. The curious thing is that only one of them dared to vote accordingly and that was Irene Espinosa Cantellano, who having a dissenting vote, her arguments are reflected in the minute with her name and surname.
The other, kept anonymous, was thrown in his arguments, but reserved in his vote.
There is something that draws attention in the statements of several of them and it has to do with a very important weapon that the Bank of Mexico has and that has been diminished, overwhelmed by the activism of President Andrés Manuel López Obrador on inflation issues, the communication.
Clear and forceful communication, says one of them. It must be communicated that the bank is willing to fully use its tools to bring inflation to its goal, says another.
The Mexican central bank uses this monetary instrument that allows it to modulate the cost of money. And you can do it by majority or unanimously. It is its sole power to determine the pace and timing of interest rate movement.
But the Bank of Mexico has to recover and assert its voice as the authority that has to be in charge of combating these inflationary pressures.
It cannot be that one of those propaganda strategies that are decided in the National Palace snatches the banner of combating inflation from the Bank of Mexico with a program without head or tail that only serves to protect the presidential popularity.
The most important text that cannot be forgotten by each other in the Governing Board is Article 1 of the Law of the Bank of Mexico, which says, “The central bank will be a person of public law with an autonomous character and will be called Banco de México. ”.
Televisa News Anchor
The great Depression
Degree in Communication Sciences from the National Autonomous University of Mexico, with a specialty in finance from the Autonomous Technological Institute of Mexico and a master’s degree in Journalism from the Anahuac University.
His professional career has been dedicated to different media. He is currently a columnist for the newspaper El Economista and news anchor on Televisa. He is the owner of the 2 pm news space on Foro TV.
He is a specialist in economic-financial issues with more than 25 years of experience as a commentator and host on radio and television. He has been part of companies such as Radio Programas de México, where he participated in VIP business radio. He was also part of the management and talent team of Radio Formula.