Money will be even more expensive this year, warns Moody’s Analytics

“In this sense, we believe that a rise of 50 basis points sends a clearer message towards the commitment to price stability and even opens space for the authority to better assess the nature and implications of the recent rise in inflation,” he explained. .

He highlighted that the adjustment in Banxico’s target interest rate is in the same direction taken by the Federal Reserve last week, although with a rise of a different magnitude, which confirms the intention of the Mexican authorities to continue with the monetary cycle. as long as inflation remains resistant to going down.

With this increase, Banxico increases the interest rate differential to 650 basis points with respect to the Fed’s federal funds rate.