Victoria Rodríguez debuts as governor; Banxico raises interest rate to 6% – El Financiero

In its first decision of this 2022, the Bank of Mexico (Banxico) raised by 50 basis points the benchmark interest rateto place it at 6 percent, from 5.5 percent previously.

This is in line with what was expected by analysts, who expected an increase due to inflationary pressures. 86 percent of specialists surveyed by Bloomberg estimated that the benchmark could be increased by 50 basis points.

This is the sixth time in a row in which Banxico raises the rate, and the second in a row in which the increase is 50 points. The adjustment will be effective from Friday, February 11.

The decision was supported by Victoria Rodríguez Ceja, Galia Borja, Irene Espinosa and Jonathan Heathwhile Gerard Esquivel he voted for an increase but only by 25 basis points.

This is the first time that Banxico makes a monetary decision with Victoria Rodriguez Ceja as the first female governor of the body, after she officially became the incumbent on January 1.

Recently, Deputy Governor Jonathan Heath indicated through a podcast organized by Banorte that Banxico would have to anticipate the decisions made by the Federal Reserve of the United States (Fed), which expects to start the cycle of hikes in March.

Citibanamex analysts indicated that this decision, the first with Rodríguez Ceja as governor, is an incentive for the Governing Board to send a message that reinforces the credibility of Banxico’s commitment to fulfilling its objective (price stability) in an environment complex economic.

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