MEXICO CITY, Nov 12 (Reuters) - 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 bank’s website.
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)