Financial institution of Mexico ought to talk about decoupling from U.S. Fed, says Mejia

MEXICO CITY, Jan 25 (Reuters) – Decoupling from the U.S. Federal Reserve’s financial coverage needs to be one matter for dialogue for the Financial institution of Mexico’s governing board at its upcoming financial coverage assembly, new Deputy Governor Omar Mejia stated in a Bloomberg Linea story printed on Wednesday.

“We will be reviewing the information. We’ve got the choice coming quickly and these are parts we’re going to have to include,” Mejia stated after a gathering with native financial institution affiliation ABM.

Video accompanying the story quoted Mejia as saying the five-member governing board of Banxico, because the central financial institution is understood, would talk about the problem on the assembly.

“It is one of many parts, it is a vital aspect, however it’s not the one aspect,” stated Mejia.

Banxico didn’t instantly reply to a request for remark.

Banxico was already contemplating elevating its key rate of interest at its subsequent financial coverage assembly, scheduled for Feb. 9, in response to minutes from the December assembly, earlier than inflation accelerated and exceeded expectations in early January, additional bolstering these bets.

“The board considers that it’s going to nonetheless be needed to lift the reference charge in its subsequent financial coverage assembly,” minutes from the December assembly stated, including it might then assess whether or not rates of interest must be adjusted additional.

At its December assembly, Banxico hiked its key charge by 50 foundation factors to a file 10.50%.

For its half, the Fed can also be anticipated to lift its key lending charge at its assembly subsequent week, on Jan. 31-Feb. 1, though at a slower tempo than it has beforehand.

“The financial institution’s financial posture has at all times been accountable with independence of the relative posture now we have with the Fed,” stated Mejia.

Reporting by Noe Torres; Writing by Carolina Pulice; Enhancing by Leslie Adler and Bradley Perrett

Our Requirements: The Thomson Reuters Belief Rules.

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