Mexican central bank survey raises 2018 forecasted inflation rate

  • Bizline

Dec 16, 2018-

Mexico’s forecasted inflation rate at the end of 2018 was raised to 4.68 percent from a previous forecast of 4.55 percent, according to a survey released Friday by the Central Bank of Mexico (Banxico). Such a forecast surpassed the permanent inflation target of 3 percent Banxico has set with a differential of one percentage point above or below that figure. Meanwhile, the survey, carried out on Dec. 3-11, left the forecasted economic growth rate unchanged for this year. According to previous forecasts from Banxico, the Mexican economy, the second largest in Latin America behind Brazil, could register economic growth 

between 2 and 2.6 percent this year. However, the survey carried out among 32 groups of analysts reduced the forecasted growth of Mexico’s gross domestic product for 2019 to 1.8 percent from a previous forecast of 1.90 percent. In regard to the benchmark interest rate, the survey estimated that the cost of credit would be at 8.25 percent by the end of this year and will remain so until 2019. On November 15, Banxico’s Governing Board decided to raise the overnight interbank interest rate by 25 basis points, leaving it at 8 percent, the highest level in a decade. (XINHUA)

Published: 16-12-2018 09:01

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