A vendor wearing a face mask waits for customers at a wholesale food market amid the COVID-19 outbreak in Mexico City, Mexico, on June 18, 2020. (Photo by Francisco Canedo/Xinhua)
Banxico raised its inflation forecast for the end of 2022 to 5.5 percent from the 4 percent projected in February, while increasing it slightly for 2023 from 3.1 percent to 3.2 percent.
MEXICO CITY, March 24 (Xinhua) -- The Central Bank of Mexico (Banxico) on Thursday raised the key interest rate for the seventh consecutive time as it also raised its inflation forecast for the year due to pressures from the COVID-19 pandemic and geopolitical conflict.
In a statement, the bank said its Board of Governors unanimously 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 6.5 percent as of Friday.
"Global inflation continued to rise, driven by bottlenecks, and high food and energy prices," the bank said.
"Adding to the shocks from the pandemic are pressures stemming from the geopolitical conflict," the bank added.
Banxico raised its inflation forecast for the end of 2022 to 5.5 percent from the 4 percent projected in February, while increasing it slightly for 2023 from 3.1 percent to 3.2 percent.
The central bank began the current cycle of rate hikes in June 2021, amid rising inflation. ■
