Investor Presentaiton
In view of the intensification of inflationary pressures and the greater challenge to control inflation,
the Governing Board raised the target for the Overnight Interbank Interest Rate by 75bp in its June
and August meetings, up to a level of 8.50%.
Target for the Overnight Interbank Interest
Rate, Headline and Core Inflation 1/
Annual %
Short-term Ex-Ante Real Rate and
Estimated Range for the Short-term
Neutral Real Rate in the Long Term 2/
Annual %
Target for the overnight interbank
interest rate (policy rate)
Headline inflation
Core inflation
10
F1 August
Interest
August
9
Short-term neutral real rate range
in the long term
6
August
%
rate
5
8
7
6
G
3
2
Headline
inflation target
2007
2008
2009
2010
2011
2012
2014
2015
2016
2017
2018
2019
2020
2021
2022
5
0
Short-term ex-ante real rate
3
-1
N
1/ The data shown up to January 20, 2008 corresponds to the
Overnight Interbank Interest Rate (policy rate).
Source: Banco de México with INEGI data.
BANCO-MÉXICO
-2
2/ The short-term ex ante real rate is constructed using the target for the overnight
Interbank interest rate and the mean of 12-month inflation expectations from Banco
de México's Survey published on August 1, 2022. The dotted line corresponds to the
midpoint of the range for the short-term neutral real rate in the long term, which is
now between 1.8 and 3.4%. Source: Banco de México.
Quarterly Report April-June 2022
In its monetary policy decision of
August, the Governing Board restated
that it will assess the magnitude of the
upward adjustments in the reference
rate in its next policy decisions based
the prevailing conditions, thus
reinforcing Banco de México's
commitment to its
constitutional
on
mandate.
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