Mexico - EXICO CITY, April 29 - Mexico's public finances could handle higher interest rates, a senior finance ministry official said on Thursday as the country faces an uptick in price pressures that have taken inflation significantly above the central bank's target rate.
If it should happen, government increases of interest rate will not cause widespread poor taxation, said Ivan Cajeme Villarreal, head of economic planning at the minister.
Villarreal was speaking at a news conference on public finances. The Deputy Minister Gabriel Yorio said that the recent increase in inflation did not seem permanent.
Inflation has accelerated faster than expected in the first half of April to 6.05%, the highest level in over three years.
The central bank targets a rate of 3% and has a one-percentage point tolerance range above or below that, so the spring in inflation has encouraged speculation that the bank may have to increase interest rates again before too long.You know, I want you. I’m in a positive mood.