Mexico City, May 19 (IANS): The Bank of Mexico has decided to keep the key interest rate unchanged at 11.25 per cent, putting an end to consecutive rate hikes since June 2021, as the country enters a stage of "disinflation".

The central bank's five-member governing board unanimously voted against adjusting the target overnight interbank interest rate, as the current rate will help meet target inflation of 3 per cent, reports Xinhua news agency.

"The governing board evaluated the magnitude and diversity of inflationary shocks and their determinants, as well as the evolution of medium- and long-term expectations and the price formation process," the central bank said in a statement.

The board believes the economy has started to undergo a disinflationary process given mitigated inflationary pressures.

However, the inflationary outlook will be "complicated and uncertain" towards the end of 2024, with potential increases in the price of energy or agricultural goods, it said.

The bank expects inflation to stand at 4.7 per cent at the end of 2023 and 3.1 per cent at the end of 2024.