Q: Banco de México started hiking rates long before the US Federal Reserve. Do you expect further hikes this year?
A: I would begin by pointing out that the inflationary outlook in Mexico has been evolving and has become increasingly challenging and uncertain. To deal with this scenario, Banco de México has increased the policy rate by 375 basis points (bps) since June 2021, increasing 225bps in 2022. An important part of this tightening actually took place before the first increase of the federal funds rate.
