Mexico Interest Rate2022 Data - 2005-2021 Historical - 2023 Forecast - Calendar

Mexico's central bank raised its benchmark policy rate unanimously by 75 bps to 7.75% on June 23rd, 2022, as expected, amid persistent inflationary pressures resulting from the Russia-Ukraine war and prospects of tighter monetary policy worldwide. It was the ninth rate-hike since the monetary board started normalization process in June last year, lifting borrowing costs to the highest since October of 2019. In view of greater-than-anticipated pressures on inflation, forecasts for headline inflation were revised upwards up to the third quarter of 2023 and core inflation for entire horizon, although convergence to the 3% target in the first quarter of 2024 is maintained. Further, the economic activity is expected to continue recovering gradually during the second quarter of 2022. However, the central bank emphasized its intentions to continue raising the interest rates, including taking forceful measures if conditions so require.

Mexico's central bank raised its benchmark policy rate by another 50 bps to 7% on May 12th, 2022, as expected, amid concerns about upside inflation risks from the war in Ukraine and expectations of faster monetary policy tightening worldwide. It was the eighth consecutive hike, bringing borrowing costs to the highest since February 2020. The decision was not unanimous. Policymakers noted that Mexican headline inflation and the closely watched core index rose in April to their highest levels since January 2001. In view of greater-than-anticipated pressures on inflation, forecasts for headline and core inflation were revised upwards up to the second and third quarter of 2023, respectively, although convergence to the 3% target in the first quarter of 2024 was maintained. Meanwhile, preliminary data suggests that economic activity rebounded during the first quarter.

Mexico's central bank decided unanimously to raise the target for the overnight interbank interest rate by 50 basis points to 6.5% on March 24th 2022, as expected citing inflationary pressures due to the war in Ukraine and expectations of a faster withdrawal of monetary stimulus worldwide. It was the seventh consecutive hike and bring borrowing costs to the highest since March 2020. Policymakers noted that headline inflation rose to 7.29% from a year earlier in the first fortnight of March, and core to 6.68%, while their expectations for 2022 and 2023 increased again. Medium-term expectations for headline inflation were revised upwards at the margin, while those for core inflation were left unchanged and longer-term expectations have remained stable at levels above the target. The bank revised significantly upwards forecast for headline and core inflation for the entire horizon and convergence to the 3% target is now expected to be attained in the first quarter of 2024.