Bank of Mexico halts tightening cycle

Board says it will be necessary to keep rates unchanged “for an extended period”

The Bank of Mexico
The Bank of Mexico
Daniel Hinge

The Bank of Mexico ended the sharpest tightening cycle in its history on May 18, as its governing board held its policy rate at 11.25%.

Banxico’s board voted unanimously to hold the rate, which it started increasing in June 2021 and has since boosted by 725 basis points. It paused rates despite inflation remaining well over the 3% target.

The board’s policy statement said the economy “has started to undergo a disinflationary process”. It still forecasts that inflation will converge to Banxico

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.