Analysts see Mexico inflation at double cenbank’s target in 2021, despite rate hikes

07/13/2021

Source: Reuters

MEXICO CITY (Reuters) – Though the Bank of Mexico hiked its key interest rate last month to stem surging inflation, analysts have increased their forecasts for Mexican inflation to around 6% for year end, double the central bank’s target.

Banxico, as the central bank is known, unexpectedly raised the benchmark interest rate by 25 basis points to 4.25% at its June 24 monetary policy meeting, saying it was necessary to avoid adverse effects on inflation expectations and citing price formation in the United States.

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