LatinNews Daily - 30 September 2022

*Mexico’s central bank (Banxico) has raised its benchmark interest rate by 75 basis points to 9.25%. This represents the bank’s eleventh consecutive rate hike. In a statement, Banxico said it had raised rates as global economic activity was continuing to decelerate while global inflation continued to rise. It also noted that “a wide range” of other central banks were also continuing to raise interest rates. Banxico stated that annual inflation in Mexico stood at 8.76% in the first two weeks of September “maintaining levels not seen in two decades”. The bank expects inflation to stand at 8.6% at the end of 2022, up from a previous estimate of 8.1% in August. In a press conference on 29 September, Mexico’s President Andrés Manuel López Obrador questioned the strategy of raising interest rates to tackle inflation saying that “it is not sufficient nor is it the best [strategy]”. López Obrador said the key was to figure out how to grow without inflation.

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