LatinNews Daily - 15 December 2023

*Mexico’s central bank (Banxico) has announced that it will maintain its benchmark interest rate at 11.25% for the sixth consecutive time. Banxico’s five-member governing body unanimously decided to retain the rate, stating it was necessary to reach the target of 3% inflation, and that it anticipates maintaining the rate at this level for some time. Banxico has kept the rate at 11.25% since March. The announcement came a week after Mexico’s national statistics institute (Inegi) published consumer price index (INPC) figures for November, which showed monthly inflation was 0.64%, bringing the annual rate to 4.32%, up from 4.26% in October when the monthly rate was 0.38%. Pointing to these figures, Banxico noted the elevated annual rate was due to an increase in the non-core inflation while core inflation, which discounts volatile items in its calculation, continued to decrease but “remained at high levels”. Banxico’s current projections indicate that inflation will only approach 3% in 2025.

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