By Anthony Esposito
MEXICO CITY (Reuters) – The Bank of Mexico’s cycle of rate hikes is not yet over and one or two increases are likely forthcoming, though any monetary policy decision will depend on incoming data, the bank’s Deputy Governor Jonathan Heath said on Monday.
Banxico, as the bank is known, raised its benchmark interest rate by 25 basis points to 4.75% on Thursday, as expected, in a four-to-one vote by its governing board, expressing concern about above-target inflation. Heath voted with the majority for the rate hike.
“This is my personal opinion, that the cycle of hikes is not over yet, that perhaps we’re not too far from the end. Of course, this will depend much on the evolution of many different indicators,” Heath told Reuters in an interview.
“I think that we should still maybe see one or two more (rate) hikes,” said Heath.
(Reporting by Anthony Esposito; Editing by Cynthia Osterman)
