MEXICO CITY Nov 12 Mexico's central bank must
act in a timely way to head off risks to inflation, Banco de
Mexico board member Manuel Sanchez said on Monday.
In a presentation to an investors' forum, Sanchez said
sustained high inflation could lead to a rise in inflation
expectations and erode the credibility of the central bank's
long-term target of 3 percent.
"Monetary policy must act in a timely way," he said,
according to a copy of the presentation published on the central
Inflation has been over 4 percent, the upper limit of the
Banco de Mexico's tolerance zone, for the last five months,
although it has started to trend down.
(Reporting by Krista Hughes)