The Central Bank of Mexico announced Thursday that it had raised its benchmark rate to 10% with another hike of 75 basis points, the twelfth in a row, in the face of inflation at its highest in 20 years.
Inflation has however slowed slightly over twelve months, to 8.41% in October after the record of 8.7% in September, the National Institute of Statistics (Inegi) announced the day before.
One of the five central bank governors voted for only a 50 basis point hike in the benchmark rate, according to the official statement.
The central bank hopes to return to its target of 3% annual inflation in the third quarter of 2024.
The press release also emphasizes the good health of the Mexican peso, which has shown better resilience than other currencies.
The dollar is worth 19.35 Mexican pesos against 21.91 on November 26, 2021. Other Latin American currencies, such as the Colombian peso, on the contrary, are falling against the greenback.
The central bank also hails a better-than-expected recovery.
Discover the best free bank cards thanks our comparison
Experts anticipate a 2.1% increase in GDP for 2022. A member of the OECD, the Mexican economy shrank by 8.4% in 2020 with the Covid-19 pandemic. Growth was 5% in 2021.