Bank of Mexico concerned about facing inflation, Fed normalization at same time

FILE PHOTO: The facade of the Bank of Mexico building is pictured in downtown in Mexico City
FILE PHOTO: The facade of the Bank of Mexico building is pictured in downtown in Mexico City, Mexico February 28, 2019. REUTERS/Daniel Becerril

November 19, 2021

MEXICO CITY (Reuters) – The Bank of Mexico’s governor Alejandro Diaz de Leon said on Friday that the most complex scenario for the bank would be to face the inflationary challenge and normalization of U.S. monetary policy in an intense and simultaneous manner.

Mexican consumer prices rose 6.24% in the year through October, twice the Bank of Mexico’s inflation target of 3% plus or minus one percentage point, which led to a hike in the benchmark interest rate by 25 basis points on November 11 for the fourth straight policy meeting.

(Reporting by Sharay Angulo; Writing by Anthony Esposito)