{"id":1361,"date":"2023-03-16T22:49:35","date_gmt":"2023-03-16T22:49:35","guid":{"rendered":"https:\/\/www.ibarrapg.com\/?p=1361"},"modified":"2025-12-23T17:04:06","modified_gmt":"2025-12-23T17:04:06","slug":"information-regarding-the-increase-in-the-overnight-interbank-interest-rate","status":"publish","type":"post","link":"https:\/\/www.ibarrapg.com\/es\/information-regarding-the-increase-in-the-overnight-interbank-interest-rate\/","title":{"rendered":"Information Regarding the Increase in the Overnight Interbank Interest Rate"},"content":{"rendered":"<p style=\"text-align: justify;\">The purpose of this informative note is to inform our clients about the increase in borrowing costs to a record high of 10% (ten percent), as announced by the Governing Board of the Mexican Central Bank (<em>Junta de Gobierno del<\/em>\u00a0<em>Banco de M\u00e9xico<\/em>) on November 10<sup>th<\/sup>, 2022, aimed at maintaining the pace with the US Federal Reserve\u2019s most aggressive tightening campaign in years, as the United States is Mexico\u2019s main export market.<\/p>\n<p style=\"text-align: justify;\"><strong>Antecedentes<\/strong><\/p>\n<p style=\"text-align: justify;\">Currently, economies all around the world have been struggling due to various situations that have been occurring lately, with a particular focus on the geopolitical conflict and on the COVID-19 global pandemic; two (2) of the most significant events that have contributed to the Mexican Central Bank (Banco de M\u00e9xico) increasing the target for the overnight interbank interest rate by 75 (seventy-five) basis points to 10% (ten percent), effective November 11th, 2022.<\/p>\n<p style=\"text-align: justify;\">In addition, a vast number of central banks globally have continued to raise their reference rates, which are expected to remain at high levels, such as the Federal Reserve raising the target range for federal funds by 75 (seventy-five) basis points for a fourth consecutive time.<\/p>\n<p style=\"text-align: justify;\">An important factor to keep in mind is that the Mexican Central Bank (Banco de M\u00e9xico) often takes into consideration the actions of its US counterpart when deciding to raise its own monetary policy rates, ever since diminishing the gap between the American and Mexican governments\u2019 rates may lead to destabilizing outflows of its own capital.<\/p>\n<p style=\"text-align: justify;\">According to the Mexican Central Bank (Banco de M\u00e9xico) inflation is still projected to reach a 3% (three percent) target in the third quarter of 2024 (projections subject to risk).<\/p>\n<p style=\"text-align: justify;\"><strong>Key factors in raising the target for the overnight interbank interest rate:<\/strong><\/p>\n<p style=\"text-align: justify;\">In this regard, key global risks directly affecting the Mexican Central Bank\u2019s (Banco de Mexico) monetary policy include:<\/p>\n<p style=\"text-align: justify;\"><strong>a)<\/strong> COVID-19 global pandemic.<\/p>\n<p style=\"text-align: justify;\"><strong>b)<\/strong> Persistence of inflationary pressures.<\/p>\n<p style=\"text-align: justify;\"><strong>c)<\/strong> Intensification of geopolitical turmoil.<\/p>\n<p style=\"text-align: justify;\"><strong>d)<\/strong> Tight monetary and financial conditions.<\/p>\n<p style=\"text-align: justify;\">On the upside, the Mexican Peso\u2019s recent appreciation is one positive sign for Mexico\u2019s economy, with the Mexican Central Bank (Banco de M\u00e9xico) highlighting its \u201cgreater resilience compared to that of other currencies\u201d.<\/p>","protected":false},"excerpt":{"rendered":"<p>The purpose of this informative note is to inform our clients about the increase in borrowing costs to a record high of 10% (ten percent), as announced by the Governing Board of the Mexican Central Bank (Junta de Gobierno del\u00a0Banco de M\u00e9xico) on November 10th, 2022, aimed at maintaining the pace with the US Federal [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":2159,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1361","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-otros"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.ibarrapg.com\/es\/wp-json\/wp\/v2\/posts\/1361","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ibarrapg.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ibarrapg.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ibarrapg.com\/es\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ibarrapg.com\/es\/wp-json\/wp\/v2\/comments?post=1361"}],"version-history":[{"count":4,"href":"https:\/\/www.ibarrapg.com\/es\/wp-json\/wp\/v2\/posts\/1361\/revisions"}],"predecessor-version":[{"id":2549,"href":"https:\/\/www.ibarrapg.com\/es\/wp-json\/wp\/v2\/posts\/1361\/revisions\/2549"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ibarrapg.com\/es\/wp-json\/wp\/v2\/media\/2159"}],"wp:attachment":[{"href":"https:\/\/www.ibarrapg.com\/es\/wp-json\/wp\/v2\/media?parent=1361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ibarrapg.com\/es\/wp-json\/wp\/v2\/categories?post=1361"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ibarrapg.com\/es\/wp-json\/wp\/v2\/tags?post=1361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}