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Banxico Board Member Suggests Rate Pause After Consecutive Hikes

MEXICO
  • A board member who backed this month's decision to raise the benchmark interest rate to 4.5% said no more hikes may be needed for now, suggesting a pause in the country's monetary policy tightening.
  • The member, who wasn't identified said future decisions should be data dependent and the market should be aware that the August hike didn't imply that aggressive increases were coming.
  • Deputy governor Jonathan Heath backed both hikes after earlier voting for cuts in minority decisions.
  • Fellow board members Galia Borja and Gerardo Esquivel voted to hold for the second straight decision, arguing that inflation was temporary and caused by external factors that can't be affected by monetary policy.
  • The two other members who voted to hike said an increase was needed to avoid secondary effects, according to the minutes
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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