December 3, 2013
Mexico should ramp up public spending in the first months of 2014 and its economy is also likely to receive help from improving conditions in the United States, central bank governor Agustin Carstens was quoted as saying on Tuesday.
Mexico’s economy is performing at its weakest since 2009, with analysts polled by the central bank expecting it to post growth of around 1.3 percent this year.
In an interview with newspaper El Universal, Carstens reiterated the bank’s view that economic expansion was likely to pick up to around 3 percent to 4 percent next year, as the United States’ recovery gathers strength, lifting Mexico’s exports.
October 2, 2013
Los Angeles Times, 10/1/2013
Storms and insecurity are further eroding once-optimistic predictions for Mexico’s economic growth, analysts say. Mexico’s economy contracted in the second quarter for the first time in four years. The growth rate is more likely about 1.7%, the government says, or half the prediction of just 10 months ago — and a little less than half of last year’s pace. Some private economists put the current rate even lower.
March 14, 2013
Chicago Tribune, 3/14/2013
Mexico’s peso is scaling new highs amid confidence in the country’s reform push, a likely credit ratings upgrade and profit taking after last week’s interest rate cut, sparking speculation about how far it will rise before authorities act. The peso has gained 2.6 percent since the start of the month, the best performance of the 152 currencies tracked by Thomson Reuters, and broken through key levels of 12.50 per dollar for the first time in 18 months.
The rise has come despite a 50 basis point cut in benchmark interest rates to a record low 4 percent on Friday, which only served to fuel investor optimism about the outlook for Latin America’s No. 2 economy.
November 6, 2012
Mexican central bank Governor Agustin Carstens said that the benefits of a fiscal overhaul raising taxes, as Mexico’s incoming president is expected to propose, would outweigh any short-term inflation increase.
“What we know about tax reforms worldwide, when they are implemented they have a once-and-for-all impact on CPI, but then the effect on inflation gets diluted,” Carstens said yesterday in an interview in Mexico City following the conclusion of Group of 20 meetings. Carstens said increasing government revenue would provide “a much stronger basis for stronger growth” and help limit inflation in the “medium and long term.”
February 2, 2010
Financial Times, 2/2/2010
The new head of Mexico’s central bank has promised closer co-operation with the government will underpin his six-year tenure, a move likely to heighten investor concerns about his institution’s independence.
Agustín Carstens, who took over as Bank of Mexico governor at the start of this year, told the Financial Times in an interview there was “huge scope for constructive interaction” with the centre-right administration of Felipe Calderón, president.
Such comments risk unnerving investors, who fear his close links to Mr Calderón could make the bank more susceptible to political pressure.
Mr Carstens said investor concerns were unfounded. “There is no reason to worry; the only thing that both the president and the Banco de Mexico under my leadership are trying to do is to exploit those synergies that are possible.”
December 11, 2009
Dec. 10 (Bloomberg) — Mexican President Felipe Calderon’s decision to appoint Social Development Minister Ernesto Cordero as finance minister may hinder the government’s ability to push through reforms, according to Barclays Capital.
Cordero, 41, may struggle to persuade Congress to pass laws, Barclays analysts Roberto Melzi and Jimena Zuniga said. Fitch Ratings last month cut Mexico’s rating to BBB, the second- lowest investment grade, citing a need for fiscal changes. Standard & Poor’s may decide on whether to lower it this month.
October 7, 2009
Oct. 7 (Bloomberg) — Mexico’s peso gained for a fourth day as lawmakers from the Institutional Revolutionary Party said they will seek “more aggressive” spending cuts than President Felipe Calderon proposed in his 2010 budget plan.
The currency rose 0.8 percent to 13.3683 per U.S. dollar at 5 p.m. New York time, from 13.4674 yesterday. The peso has gained 3 percent in the past four days.