(Adds comments from Banxico's Espinosa, context on inflation)
By Adriana Barrera
MEXICO CITY, Feb 15 (Reuters) - Bank of Mexico Deputy
Governor Irene Espinosa said on Wednesday that the bank's
monetary posture is in restrictive territory and the balance of
risks to inflation remains tilted to the upside.
Espinosa's comments come after the bank's five-member
governing board unanimously voted last week to increase the
benchmark interest rate by 50 basis points to 11.00%, above
market forecasts, citing a complex inflation scenario and
suggesting future hikes would be smaller.
Banxico, as the central bank is known, has raised its
benchmark interest rate by 700 basis points during the current
hiking cycle, which began in June 2021, as inflation surged past
its target of 3%, plus or minus 1 percentage point.
"The magnitude of these increases has allowed us to achieve
a restrictive monetary stance," Espinosa said in a speech at an
agribusiness summit hosted by Deloitte.
The Feb. 9 decision by Banxico came hours after data showed
consumer prices in Latin America's second largest economy rising
in January above December readings and market expectations.
Espinosa said "we still can't talk of a generalized
reduction in (price) pressures."
Inflation has been easing since hitting an over
two-decade year high of 8.70% in August and September, but it
still remains
far above Banxico's target
after accelerating to 7.91% in the 12 months through
January.
Banxico may adjust Mexico's economic growth forecasts,
said Espinosa, noting the bank currently sees 2023 growth
between 1% and 2.6%.
(Reporting by Adriana Barrera; Writing by Anthony Esposito;
Editing by Stephen Eisenhammer, Brendan O'Boyle and Chris Reese)
