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Mexico's central bank raises key interest rate for 6th straight time amid persistent inflation

MEXICO CITY
2022-02-11 10:54

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MEXICO CITY, Feb. 10 (Xinhua) -- Banxico, the central bank of Mexico, on Thursday raised its key interest rate for the sixth consecutive time citing greater and longer-than-expected inflationary pressures in the country.

Banxico said in a statement that its governing board decided by majority vote to raise the target for the overnight interbank interest rate by 50 basis points to 6 percent, effective on Friday.

Mexico's headline inflation, the raw inflation figure reported through the consumer price index, reached 7.07 percent year-on-year in January, Banxico said.

The bank said it also raised its forecasts for the country's headline inflation at the end of this year to 4 percent, and that at the end of 2023 to 3.1 percent.

Banxico has a 3-percent inflation target, but the figure has climbed to its highest level in two decades, largely due to the COVID-19 pandemic.

According to the bank, world inflation has continued increasing due to pressures driven by bottlenecks in production and high levels of food and energy prices, among other factors.
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