the Mexican president, Andres Manuel Lopez Obradorasked the Bank of Mexico (Banxico) not just focus on tackling the inflation with increases in the interest rate, but also encourages the economic growth.
We would like it not only to take care of, although it is important, the control of inflation, that is why the rate increases, but also to balance taking care of growth”,
He commented at a press conference during his tour in Mérida, in the southern state of Yucatán.
The president recalled that this Thursday the Banxico raised the rate again by 75 base points in its most recent monetary policy announcement, with which it reached a new historical maximum of 10%.
President López Obrador, who has questioned the rise in rates in the world, assured that he respects the autonomy and decisions of the Mexican central bank, but insisted on his proposal to also focus on growth.
They leave more, always, for the fight against inflation and not for the promotion of growth. It’s what has always been done, it’s very traditional, but you have to respect the decision.”
held.
In addition, the Mexican president pointed out that care must also be taken that the climbing in the interest rates do not affect the economy.
In this sense, he pointed out that when the interest rate is increased in the monetary policy decisions of the Banxico there is a risk of paralyzing the economy.
Why is the rate increasing? Because that way inflation goes down, nothing more than the risk that the economy will be paralyzed, that there will be no economic growth because the rates go up”,
express.
This Thursday the Mexican central bank also lowered its expectation of inflation for the fourth quarter of 2022 to 8.3% from 8.6% and maintained its forecast that the target rate of 3% will be reached until 2024.
At the end of 2023, Banxico estimated that inflation will be 4.1%, slightly higher than its previous forecast of 4.0%.
According to the most recent Banxico survey of economic analysts, private sector specialists projected that general inflation will close the year at 8.54%.
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