This responsibility implies making progress in measuring systemic risk, strengthening the prudential regulation and supervision of the system, and perfecting the resolution mechanisms for insolvent financial institutions. Challenges to price stability in Mexico Monetary policy in Mexico has been conducted according to the constitutionally mandated primary objective of seeking the stability of the purchasing power of the national currency.
To express its commitment to this mandate, since 2001 the Bank of Mexico has implemented its monetary policy within an explicit inflation-targeting scheme. Starting from double-digit annual inflation, references were gradually reduced, and since 2003 the permanent target has been 3 percent annual inflation. This commitment refers to headline inflation as measured by the National Consumer Price Index (INPC).