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Mexico’s central bank raises key interest rate for 8th straight time

Mexico's central bank raises key interest rate for 8th straight time

Mexico City, May 13 (SocialNews.XYZ) The Central Bank of Mexico (Banxico) has raised its key interest rate for the eighth consecutive time since June 2021 to contain growing inflation.

In its monetary policy statement, the bank said its Board of Governors decided to raise the overnight interbank interest rate (the interest rate banks use to borrow from and lend to each other) by 50 basis points to 7.0 per cent, reports Xinhua news agency.

 

Banxico also raised its 2022 inflation forecast again to 6.4 per cent by the end of the year, up from 5.5 per cent it anticipated in March.

The bank explained that during the first quarter of the year, world economic activity grew less than expected and global inflation continued to rise.

Meanwhile, according to the most recent official data, inflation stood at nearly 7.7 per cent through April year-on-year, its highest level since January 2001.

Source: IANS

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Mexico's central bank raises key interest rate for 8th straight time

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