Mejía Castelazo was the only member of the Governing Board who voted to reduce the reference rate to 10.75%; the rest of the members voted for keep the rate at 11% .
In the minutes, it can be read that the deputy governor sees two shocks in inflation: on the one hand, the slowdown of the economy will help inflation converge to the target and on the other hand, the depreciation of the exchange rate due to “idiosyncratic events”, which was the victory of Morena in the June 2 election.
The members of the Board expect that with the presidential election in the United States, the Mexican currency will suffer another episode of volatility that will be taken into account in the inflationary process, but they estimate that this volatility will be temporary and will moderate.
The balance of risks to inflation is skewed to the upside, with one member noting that this creates an “uncertain” outlook for inflation.
The majority of the Governing Board highlighted the risk that underlying inflation will remain high, especially in the services component, which has been above 5% for several months.
With this information, members hope that the inflationary environment will allow them to discuss future interest rate cuts.
“The actions implemented will be such that the reference rate is consistent, at all times, with the path required to promote the orderly and sustained convergence of general inflation to 3%,” the document states.
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