Mexico central bank raises benchmark rate to 6.75% from 6.50%
inflation to be significantly above target this year but should come back down toward the end of the year.
The Mexico's central bank raises the benchmark interest rate to 6.75% from 6.5%.
- The decision was unanimous
- balance of risks to growth has downward bias
- perception of probability of more extreme risk materializing has diminished
- Despite favorable performance international financial markets,, doubt remains on external environment
- inflation will be considerably above the bank's target range in 2017
- expect inflation in the final months will start to Trend down towards the goal
- Balance of risks to inflation has deteriorated moderately
- Main challenge faced by central bank is avoiding second round of facts on price formation and keeping expectations of inflation anchored