UPDATE 1-Mexican central banker says monetary policy stance remains accommodative

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MEXICO CITY, Dec 8 (Reuters) - The Bank of Mexico's monetary policy stance continues to be accommodative and it should respond decisively to inflation levels, a member of the central bank's board said in a podcast published on Wednesday.

"We are still in accommodative terrain," Bank of Mexico board member Irene Espinosa said, according to a transcript https://www.banorte.com/wps/portal/gfb/Home/noticias-banorte/2021/ne-e16 of the podcast published by Banorte, a Mexican bank.

Espinosa, who has been one of the more hawkish members of the bank's board, made her comments as analysts prepare for the Bank of Mexico's next policy meeting on Dec. 16.

The bank last month raised its benchmark interest rate by 25 basis points to 5%, its fourth consecutive hike, and analysts expect a further increase in borrowing costs this month with inflation seen hitting a 20-year high in November.

Espinosa said managing inflation expectations was at the heart of the bank's present mission given the nature of inflationary shocks and how some effects had become visible on the margins, particularly with medium-term expectations.

"So I think that's a huge signal that tells us that our monetary policy must respond forcefully to inflation levels, to the persistence of inflation and to signals that we are already seeing in terms of the impact on expectations," she said. (Reporting by Mexico City Newsroom; Editing by Andrew Heavens and Paul Simao)