Exclusive: High rates help Mexico weather NAFTA talks, premature to talk of cuts – Carstens

07/13/2017 Reuters

Agustin_Carstens
Carstens

MEXICO CITY (Reuters) – Mexico’s central bank could pause monetary policy tightening for some time, its governor said on Thursday, but he defended high interest rates at a time of political volatility and knocked down speculation there will be rate cuts before mid-2018.

Banco de Mexico Governor Agustin Carstens said talk among private economists that rates would be reduced early next year diverged from the bank’s view, which was that it would take some time to consolidate inflation toward its 3 percent target.

He also said Mexico’s tight monetary and fiscal policy was good preparation for possible volatility stemming from presidential elections next year and NAFTA negotiations that may start in a few weeks.

Read more…

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s