© Reuters. The Bank of Mexico logo is seen on the facade of an office building in downtown Mexico City, Mexico, February 9, 2022. REUTERS/Edgard Garrido
MEXICO CITY (Reuters) – A nominee of the Mexican government to join the Bank of Mexico’s governing board, Omar Mejia, backed the central bank’s monetary tightening policies on Tuesday and promised transparency and independence if chosen for the role. “It is crucial to preserve (the bank’s) autonomy and maintain a strict respect for it in order to guarantee the institution’s credibility,” Mejia told a congressional committee. Mejia, a relatively unknown current advisor to Banxico, as the central bank is known, said that fighting inflation would be his priority if confirmed, noting the current board’s “prudent” actions since it began a monetary policy tightening cycle in June 2021.
Since then, the Banxico board has increased Mexico’s benchmark interest rate by a total of 650 basis points. The lower house committee voted in favor of advancing Mejia’s nomination, which must be approved by the full chamber and then the Senate before Mejia can join the Banxico board.