Mexican central banker sees "a way to go" on rate hikes
MEXICO CITY, May 13 (Reuters) - Bank of Mexico board member Jonathan Heath said on Friday that given the inflation outlook, there is still a "way to go" on tightening monetary policy, following the central bank's latest 50 basis points rate hike to 7.0% this week.
"By increasing the monetary policy rate by 50 basis points, the monetary stance returns to neutral territory. I think the stance consistent with the current inflation scenario should be restrictive, so there is still a way to go," he said on Twitter.
Banxico, as Mexico's central bank is known, has increased its benchmark rate by 300 basis points over the last eight monetary policy meetings as it struggles to get inflation to its target of 3%, plus or minus one percentage point.
In a hawkish statement on Thursday, Banxico said that given the complex outlook for inflation "taking more forceful measures to attain the inflation target may be considered."
Reporting by Anthony Esposito Editing by Dave Graham
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.