MEXICO: Due to pressures from the Covid-19 pandemic and geopolitical strife, the Central Bank of Mexico (Banxico) raised the benchmark interest rate for the eighth time in a row, as well as raising its inflation prediction for the year.
According to local report, Banxico's Board of Governors unanimously resolved to boost the overnight interbank interest rate (the rate at which banks borrow from and lend to one another) by 50 basis points to 6.5 percent as of Friday.
"Global inflation has continued to climb, owing to bottlenecks and high food and energy prices," according to the bank. "Pressures arising from the geopolitical struggle are adding to the pandemic's shocks." Banxico increased its inflation projection for the end of 2022 to 5.5 percent, up from 4 percent in February, and marginally increased it for 2023, from 3.1 percent to 3.2 percent.
In June 2021, the central bank began a new series of rate hikes in response to growing inflation.
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