MEXICO CITY — Mexico’s central bank is expected to raise its benchmark interest rate for the third time in a row at its next monetary policy meeting on Thursday, as inflation stays well above policymakers’ target level, a Reuters poll showed on Monday.
All 22 analysts surveyed said they expect the Bank of Mexico to raise the rate by 25 basis points to 4.75%.
Known as Banxico, the central bank in August raised the rate by 25 basis points to 4.5% in a bid to contain price pressures, although the vote was divided.
Mexican inflation accelerated faster than expected during the first half of September to 5.87%, prompting expectations of a new rate hike.
Banxico aims for a rate of 3% with a one-percentage-point tolerance threshold above and below that.
Citibanamex said in a report that inflationary pressures are high as price increases continue to surprise on the upside.
Banxico will publish its monetary policy statement on Thursday at 1 p.m. (1800 GMT). (Reporting by Miguel Angel Gutierrez; Additional reporting by Gabriel Burin; Editing by Jonathan Oatis)