The last time the objective was lowered by 4% was on 23 June 2016.
The Banco de México (Banxico) decided to record these jewels in 25 basis points for the Interbank Banking Task Force on a daily basis, to provide 4%.
By unanimity, the members of the Governor of the Central Bank of Mexico agree to take this monetary policy decision, which will effect of the departure of the 12th of February, to complement with the objective priority of maintaining inflation to the bottom.
“The Junta de Gobierno sums up the necessary actions (…) at the end of which the reference case is congruent with the order convergence and support of the general inflation to the meta of 3%”, according to the body in a press release .
How to adjust the bag?
Although Banxico does not have direct control over the prices of goods and services, the body can take risks in favor of the stability of prices.
One of the resources to adjust the reference case of the financial institutions of the country, including the interest rates that utilize the banks.
Less interest, the autonomous organism promises a mayor inversion and consumption by both people and companies, and the credit is more affordable.
To receive the interbank interest rate, Banxico considers that the current entity is “short“, states that economic activity in Mexico will increase over the next quarter quarter of 2020.
Between October and December 2020, Mexico’s Gross Domestic Product (GDP) increased by 3.1%, respecting the third quarter of this year, according to the National Institute of Statistics and Geography (Inegi). For 2021, the Secretariat for Holiday and Public Credit estimates that GDP growth will be 4.6%.
In this context, Banxico points out that annual general inflation of the country is reduced, 4.09% in October 2020, and 3.54% in January 2021.
The last time I saw the objective bag stage by 4% fue el June 23, 2016, when Banxico the situation in 3.75%.
Risks of pandemic
However, as the organization advises, the coronavirus pandemic is a global risk to be considered by the Central Banks.
“Entre los riesgos globales continues increase in contagios, retrosos in the production and distribution of vacancies“, explanation Banxico.
In this sense, the governor of the Bank of Mexico, Alejandro Díaz de León, signaled on January 12 that even if the organism estimates a recovery of 3.3%, the national evacuation process to increase trust and facilitate normalization in the most affected sectors, to boost economic growth to 5.3% by 2021.
The Government of Mexico estimates that in 2021 it will acquire a total of 174 million vacancy doses against the covid-19 for immunize to 104.6 million people. Haste these jueves, 85,332 health workers he received the complete scheme of the pharmacy.
Since the beginning of the pandemic, Latin American countries have accumulated a total of 1,968,566 positive cases of covid-19 in 171,234 fatal victims.