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"I
believe that going forward we could consider slowing the pace of
rate adjustments, as it is already very close to the appropriate
level to consolidate a de-inflationary process," he said in a
podcast interview with Grupo Financiero Banorte.
"We predict that Mexican economic activity will continue to
grow," he added, despite restrictive monetary policy and a
global slowdown which he said appears less pronounced than first
forecast.
Mexico's president has highlighted the importance of finding an
equilibrium between combating inflation and allowing economic
growth.
Mejia said though easing inflation was taking longer than
predicted, he still expects it to meet the central bank's target
in the fourth quarter of 2024, adding that the persistently high
core component remains the country's main inflationary
challenge.
Annual headline inflation in the first half of February stood at
7.76%, while the core index, which strips out some volatile food
and energy prices, reached 8.38% - well past the central bank's
target of 3%, plus or minus one percentage point.
Mejia's stance is in line with most of the central bank's board
members, who according to recent minutes from a meeting, are
considering a more moderate rate hike at the next monetary
policy meeting scheduled for March 30.
Mejia was confirmed as the central bank's newest board member
last month, when he pledged transparency and independence and
said tackling inflation would be a priority in his role.
"I came to the bank at a time when the global economic
environment presents many challenges, particularly the
inflationary outlook," he told Banorte. "However, I believe that
central banks have the right tools at their disposal."
(Reporting by Valentine Hilaire; Additional reporting by Sarah
Morland and Kylie Madry; Editing by Jacqueline Wong)
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