Bank of Mexico deputy governor Borja backs current monetary stance
TLT•Deputy Governor Galia Borja said Mexico’s benchmark interest rate of 6.50% is a “good monetary position” as inflation moves closer to the central bank’s 3% target.
1. Rate stance and inflation
Borja said the 6.50% rate was a “good monetary position” and that inflation was getting closer to target, though “the job is not yet done.” Inflation stayed within the central bank’s 3% target tolerance range, plus or minus one percentage point, for 18 of the past 22 months. Annual inflation rose to 3.62% in the first half of October from 3.42% a month earlier, while core inflation continued to moderate.
2. Economic activity
The central bank held rates at 6.50% in September, but dropped guidance explicitly signaling that policymakers would keep borrowing costs at that level. Borja said recent indicators point to a rebound in economic activity, driven by resilient services, infrastructure-related construction and technology manufacturing.
