Mexico’s economy may face further volatility, but the outlook for the country is less gloomy, Finance Minister Jose Antonio Meade said on Thursday.
“We are not exempt from seeing and living a period of great volatility, but the scenarios are becoming more contained,” Meade told local radio.
The Mexican peso slumped to a record low in January on concerns that U.S. President Donald Trump could rip up a free trade deal with Mexico, but it has recovered as the country’s northern neighbor has taken a more conciliatory tone.
The recovery in the peso from its January low will help inflation cool back toward policymakers’ 3 percent target, central bank chief Agustin Carstens said on Wednesday.
Data on Thursday showed Mexico’s annual inflation rose to 5.29 percent in early March, its fastest pace in nearly eight years, and Carstens said in a radio interview on Thursday that policymakers had some room to continue raising interest rates.