Sun, 29 May 2022

MEXICO CITY, May 12 (Xinhua) -- The Central Bank of Mexico (Banxico) on Thursday raised its key interest rate for the eighth consecutive time since June 2021 to contain growing inflation.

In its monetary policy statement, the bank said its Board of Governors 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 7.0 percent.

Banxico also raised its 2022 inflation forecast again to 6.4 percent by the end of the year, up from 5.5 percent it anticipated in March.

The bank explained that during the first quarter of the year, world economic activity grew less than expected and global inflation continued to rise.

Meanwhile, according to the most recent official data, inflation stood at nearly 7.7 percent through April year-on-year, its highest level since January 2001.

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