Banxico’s battle against inflation will last another two years

On March 30, Banxico’s Governing Board unanimously decided to raise the reference interest rate to 11.25%, an all-time high.

Espinosa asked that Banxico’s communication policy be “evaluated” in an “unpostponable” manner: “(the future guide) reinforces a very short-term vision, necessarily partial and incomplete, which does not meet the objective of contributing to the formation of expectations for the horizon in which monetary policy operates. Therefore, I reiterate the urgent need to evaluate our communication policy”.

Banxico’s deputy governor has been one of the dissenting voices in monetary policy decisions, highlighting the bank’s need to improve communication in announcements.

Regarding inflation, the minutes detail that one of the members of the Governing Board stressed that insecurity has caused increases in the prices of merchandise distribution channels.