Five members of the board voted unanimously to increase the target for the overnight interbank interest rate by 75 basis points to 8.5 percent effective Friday.
In addition, the bank raised its inflation forecast for the end of the year to 8.1 percent.
According to Banxico, the global inflation continues and in some cases has reached its highest level in decades, as imbalances between demand and supply persist in several markets and prices remain high for both food and energy.
In Mexico, the accumulated inflationary pressures derive from the COVID-19 pandemic, as well as the Ukraine crisis, among others.
As of July, the country's inflation stood at 8.15 percent year-on-year, its highest level in more than two decades, but according to Banxico, local economic activity is maintaining a gradual recovery, while the balance of risks is trending downward.
In June 2021, the central bank began a cycle of raising the key interest rate, as a result of price hikes due to the effects of the pandemic.
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