MEXICO CITY – The Bank of Mexico must have a “robust focus” on monetary decisions amid uncertainty around the world, Deputy Governor Galia Borja said in a podcast interview published by Mexican bank Banorte on Wednesday.
Banxico, as Mexico’s central bank is known, has raised its benchmark rate by 300 basis points in the last eight monetary policy meetings as it struggles to get inflation to its target of 3%, plus or minus one percentage point.
The bank should “consider a robust approach to monetary policy through decisions that provide full and absolute assurance of the Bank of Mexico’s commitment to its constitutional mandate,” Borja said.
Banxico board members should consider this approach amid challenges posed by the US Federal Reserve’s monetary tightening, uncertainty over the geopolitical conflict, a non-Russian war in Ukraine, lockdowns in China and the its potential impact on global supply chains, Borja said.
With annual inflation lingering at its highest level in two decades, “the biggest challenge” is to bring consumer prices back to Banxico’s target, the central banker said.
Borja underlined that Banxico’s statement after last Thursday’s meeting used a “more descriptive tone” and the opportunity to act more forcefully if necessary. Banxico’s statement said it could take “more vigorous measures” to bring inflation under control. (Reporting by Ana Isabel Martinez and Noe Torres; Writing by Kylie Madry; Editing by Anthony Esposito and Bernadette Baum)
This post Mexico’s central bank must have ‘robust focus’ on policy, says vice governor
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