Mexican central bank raises interest rate

Mexico’s central bank said the board was unanimous on the rate decision where it raised the benchmark interest rate to 9.25% from 8.50%. The USD/MXN pair is 0.25% bid on the day at 20.1947.

Key Quotes

Says the balance of risks for the trajectory of inflation within the forecast horizon remains biased significantly to the upside.
Says the board will thoroughly monitor inflationary pressures as well as all factors that have an incidence on the foreseen path for inflation and its expectations.
Says the board will assess the magnitude of the upward adjustments in the reference rate for its next policy decisions based on the prevailing conditions.
Says an environment of uncertainty prevails, while the balance of risks for economic activity remains biased to the downside.
Says the accumulated inflationary pressures associated with both the pandemic and the military conflict continue affecting headline and core inflation.
Sees average annual headline inflation of 8.6% for the fourth quarter of 2022.