Wed, 31 May 2023

MEXICO CITY, March 30 (Xinhua) -- Banxico, Mexico's central bank, on Thursday raised its key interest rate again but reduced the pace of increases given the downward trajectory of inflation.

The Board of Governors unanimously decided to raise the benchmark interest rate by 25 basis points to 11.25 percent effective Friday, the bank said in a statement.

Since December 2021, Banxico has opted for key interest rate increases of 75 and 50 basis points, given the acceleration of inflation.

The central bank highlighted that inflation has slowed down more than expected, estimating it will close the year at 4.8 percent.

Mexican President Andres Manuel Lopez Obrador said Thursday that the country's economy maintains a growth trajectory and will not fall into a crisis due to recent external turbulence in the banking sector.

Lopez Obrador added that Mexico is resisting external factors such as inflation and the bankruptcies of some foreign banks.

According to the president, Mexico is one of the most attractive countries for investment due partly to the United States-Mexico-Canada Agreement on free trade.

He noted that the Mexican economy could grow by 3.5 percent this year, recovering from an 8.2 percent fall in 2020 due to the impact of the COVID-19 pandemic.

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