López Obrador supports the Bank of Mexico raising rates due to inflation

López Obrador supports the Bank of Mexico raising rates due to inflation

Mexico City, Aug 18 (EFE) .- President Andrés Manuel López Obrador said on Wednesday that he “agrees” with the Bank of Mexico (Banxico) raising interest rates to contain inflation, although he criticized the body for not focus on growth.

“As now there has been an increase in inflation, they are taking as a measure to increase the interest rate, this they are carrying out and I respect that decision they make, because you have to control inflation,” he said in his wheel morning press.

His remarks come after the central bank raised the interest rate to 4.5% last Thursday, marking the second consecutive 25 basis point increase from the target.

The regulator detected pressure on headline and core inflation, which in July registered annual rates of 5.81% and 4.66%, respectively, well above Banxico’s 3% target.

However, the vote was divided, with opinions against the increase of Galia Borja and Gerardo Esquivel, both appointed by López Obrador.

“The Bank of Mexico, in my point of view, should be attentive to inflation and growth, to both, for a long time they only deal with inflation, they do not turn to see growth,” he said this Wednesday President.

The president, who attributed inflation to what is happening in the United States and to the international increase in the price of corn, assured that his government acts, especially in controlling energy prices.

He also boasted that his government has increased the minimum wage by almost 50% in real terms, which is now 141.7 pesos a day ($ 7.08).

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“Everything that is goods, that we can guarantee that prices do not increase, we are going to do it,” he offered.

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