Governor Victoria Rodríguez, Deputy Governors Irene Espinosa Cantellano, Galia Borja Gómez and Jonathan Heath voted to raise the rate by 50 basis points while Deputy Governor Gerardo Esquivel voted to raise it by 25 basis points.
“The Governing Board evaluated the magnitude and diversity of the shocks that have affected inflation and its determinants, the risk of contaminating medium and long-term expectations and price formation, as well as the greatest challenges in the face of tightening of global monetary and financial conditions”, details the monetary policy announcement.
Citibanamex considered that Victoria Rodríguez had to vote to raise the rate by 50 basis points to “strengthen her credibility as governor of the central bank.”
“That sign of forcefulness is important, of a palpable commitment to that priority mandate of the Bank of Mexico,” said Adrián de la Garza, chief economist at Citibanamex, last week.
New inflation expectations
Banxico also modified its inflation expectations for the following quarters. Inflation is expected to close at 4% in the last quarter of 2022, while the previous forecast was 3.5%.
Headline and core inflation forecasts were revised upwards. Its annual measurements are expected to converge to the 3% target towards the end of the forecast horizon. The balance of risks with respect to the expected trajectory for inflation remains on the rise. pic.twitter.com/CFNNpXxXue
– Bank of Mexico (@Banxico)
February 10, 2022
For the members of the Board, inflation will close 2023 at 3.1%, within the target goal.
Inflation in January was 7.07% due to the increase in the price of lemons and Magna gasoline, although the figure for January was slightly lower than the 7.36% of last December.
Lemon prices had an increase of 68.77% at a monthly rate. While the prices of gasoline and fondas and taquerías had a variation of 1.68% and 1.61%, respectively.