The Bank of Mexico (Banxico) raised the benchmark interest rate by about 50 basis points on Thursday, leaving it at 5.5% as of December 17, in the face of a persistent inflation outlook, which is at its highest levels in recent years. 20 years.

The decision was made with 4 votes in favor of an increase of 50 basis points and one vote in favor of increasing only 25 basis points, this being the first increase of 50 basis points that Banxico has made since February 9, 2017.

Check here: E-commerce increased in CDMX by 81% in the last two years

Likewise, Banxico's governing board increased its inflation expectations for 2021, reaching 7.1% at the end of the year, three tenths more than expected last November, while by the end of 2022 inflation would drop 3.5% already within the central bank's goal.

Inflation in Mexico experienced a year-on-year growth of 7.37% at the end of November, the highest record for this month since 2001, according to data released this Thursday by the National Institute of Geography and Statistics (Inegi).

In its statement on the monetary policy decision, the Mexican central bank acknowledged that global and domestic inflationary pressures continue to affect headline and core annual inflation, which in November registered 7.37% and 5.67%, respectively.

Of interest: What to expect from the industrial market in Mexico by 2022?

“In the national financial markets, the exchange rate depreciated and medium and long-term interest rates showed upward adjustments, influenced by external conditions. The information as of October shows a reactivation of economic activity, after the contraction in the third quarter. An uncertain environment remains and slack conditions are expected, with marked differences between sectors, ”added Banxico.

Yesterday, the Federal Reserve (Fed) of the United States announced a more accelerated increase in monthly monetary stimuli and anticipated up to three increases in interest rates, which are at historical lows, in 2022.

After the measure, the Mexican peso appreciated 1.37% against the dollar, trading at 20.81 units per greenback in the interbank market.

In Solili you can check offices available in Insurgentes, Polanco and Norte

Original note