Central Banks
Banxico’s Hawkish Board Considers Holding Key Rate for Longer
- Bank has held borrowing costs at 11.25% for four meetings
- Services inflation, ‘still complex’ outlook add to caution
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Mexico’s central bank policymakers talked about the importance of holding the key interest rate unchanged for longer than previously foreseen, with one member suggesting there may be a need to maintain monetary policy at its current level well into 2024.
Banxico, as the central bank is known, has held borrowing costs at 11.25% since March and has reiterated the need to take a wait-and-see approach amid inflation’s gradual deceleration. Board member stressed the importance of maintaining the policy, with one saying the bank should do so “at least for the rest of the year,” according to minutes of the Sept. 28 policy decision released Thursday.