The Board of Governors of Banco de México decided on a new increase of 75 base points that leaves the rate at 9.25%; a level not seen since October 2005, a decision taken unanimously that strings three consecutive rises of three quarters of a point.

This means that since the upward cycle began, in June 2021, Banco de México has raised the rate by 525 basis points in 11 movements. In the statement, the members of the Board admitted that the inflationary shocks have been of a greater magnitude than anticipated and that the prospect that their effects will fade will take longer than expected.

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The inflation peak that Banxico had forecast for the third quarter of this year, at 8.1%, was revised upwards to 8.6% and they consider it will remain at that level for the rest of the year.

There was no longer a peak in inflation, core inflation will remain high for longer and there will be a more gradual decrease that has to do with more persistent shocks, he commented. "It will be important to see the minutes to know if any of the members identify more structural pressures from Mexico on inflation or if they are already more concerned about expectations than before or if they are giving greater weight to what the Fed did and will do."

Of interest: Mexico City continues with industrial rents with increases of more than 10%

In the statement they explained that the balance of risks for economic growth is skewing downwards, which generates an uncertain environment where there is an underutilization of resources in the face of depressed demand.

This means that there will be a slowdown in growth from the third quarter and that there is uncertainty about the conditions for a further moderation in performance.

In Solili you can consult industrial warehouses available in Monterrey and Ciudad de México

Original note