The Bank of Mexico (Banxico) returned to his ‘hawk’ mode and decided this Thursday, May 9, to leave unchanged the interest rate at 11 percent given the ‘rebound’ in the trajectory of inflation in the country.
In its statement, the institution changed its tone again by stating that “moving forward, will assess the inflationary outlook to discuss adjustments in the reference rate.”
In March, after making a cut of 25 basis points, the Banxico Governing Board commented that “in the following meetings, it will make its decisions based on the information available,” removing the possibility of cuts or increases in the interest rate.
Earlier, the National Institute of Statistics and Geography (Inegi) reported that the National Consumer Price Index It stood at 4.65 percent in April, a figure that was above what the market estimated.
Inegi highlighted that the rebound was influenced by fruits and vegetables: The price of serrano chili increased 64.42 percent monthly; that of green tomatoes, 24.25 percent, and that of tomato, 13.67 percent.
The relationship between the interest rate and the price of the dollar
Experts have pointed out the differential between the rates of the United States Federal Reserve and Banxico as one of the reasons for the strength of the Mexican peso against the dollar in recent pesos.
Just last week, the Fed kept its rate at the range of 5.25-5.50 percent, a level that represents half of the Bank of Mexico rate. The Federal Reserve argued that it has not seen enough progress in the ‘battle’ against inflation.
By staying at a level considered ‘high’the Mexican peso will maintain its attractiveness for investors in the currency market for a few more weeks.
