The Bank of Mexico announced on February 17th an increase in the benchmark interest rate by 50 basis points, which is located at a level of 3.75%.

The Bank of Mexico noted that since its last meeting, the volatility in financial markets has increased, which has impact on the performance of the Mexican currency. Given this, the probability that inflation expectations depart from the 3% target of the central bank were increased.

It was clarified that this decision is not the start of a monetary tightening cycle, but subsequent increases are not ruled out depending on the evolution of the determinants of inflation and its expectations, the relative position of monetary policy with the United States.