LatinNews Daily - 22 April 2022

In brief: Mexico’s Banxico warns of ongoing inflationary pressures

* Victoria Rodríguez Ceja, the governor of Mexico’s central bank (Banxico), has warned that the inflationary environment in Mexico remains complex due to the ongoing impact of the coronavirus (Covid-19) pandemic and the conflict in Ukraine. Speaking before the senate on 21 April, she said that the bank expects inflation to decrease throughout 2022 and reach the target rate of 3% by early 2024. She said that central banks all over the world were currently facing the most difficult environment of the past four decades. Given the current climate, she said that the US was likely to tighten monetary policy faster than previously expected, triggering knock-on effects in Mexico and presenting “an additional challenge for monetary policy in our country”. Rodríguez Ceja noted that Banxico had attempted to rein in inflation by steadily increasing interest rates since June 2021, from 4% in June 2021 to 6.5% currently. Monthly inflation rose 0.99% in March, with annual inflation standing at 7.45%. Banxico’s next monetary policy meeting is scheduled for 12 May

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