Mexico president backs cenbank hikes over inflation, but slams board member


Source: Reuters

Mexican President Andres Manuel Lopez Obrador on Wednesday backed the central bank’s recent moves to raise interest rates, but took a swipe at a board member for criticizing his plan to allocate International Monetary Fund resources to pay off debt.

“I respect that decision they’re taking because inflation must be kept under control,” he told a regular news conference. “This should be something that matters to all of us.”


Mexico president signals new cabinet changes after finance minister move


Source: Reuters

Mexican President Andres Manuel Lopez Obrador said on Thursday he will be making adjustments in his administration following Sunday’s elections in which his allies lost lower house seats.

Lopez Obrador did not give additional details of what other changes he was contemplating following the announcement on Wednesday that he would tap his finance minister to run the central bank and a close ally to lead the finance ministry.


Mexico Central Bank Lowers Growth Forecast on Weak Recovery

08/13/14 Bloomberg

banco de mexicoMexican policy makers lowered their 2014 growth forecast for the third time as Latin America’s second-largest economy struggles to bolster consumer sentiment and spending.

Gross domestic product will rise 2 percent to 2.8 percent this year, down from the previous forecast of 2.3 percent to 3.3 percent, the central bank said in its quarterly inflation report today. The forecast for next year was left unchanged at 3.2 percent to 4.2 percent.

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Mexico Unexpectedly Cuts Key Rate to 3% on Economic Weakness

06/06/2014 Bloomberg

banco de mexicoMexico’s central bank unexpectedly reduced its key interest rate to a record low after cutting its forecast for 2014 growth.

Banco de Mexico lowered the overnight rate by half a percentage point to 3 percent, surprising all 20 economists surveyed by Bloomberg who had forecast no change. Both the central bank and theFinance Ministry cut their full-year growth forecasts two weeks ago as weak export demand and a tax increase sapped growth.

The central bank reduced its growth forecast for this year on May 21 to between 2.3 percent and 3.3 percent from a previous estimate of 3 percent to 4 percent after the U.S. economy, the biggest buyer of Mexican exports, stalled in the first quarter. President Enrique Pena Nieto has endedMexico’s state monopoly on oil production and encouraged more bank lending to revive growth in Latin America’s second-largest economy after growth missed analysts’ estimates in seven of the past eight quarters.

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Calderón Proposes Carstens for Banxico

El Universal, 12/9/09

President Felipe Calderón proposed to the Senate Agustín Carstens as the new governor of the Bank of Mexico, replacing Guillermo Ortiz.

Through a message, from the Manuel Avila Camacho room in the official residence of Los Pinos, the president praised the work of Carstens and his career in the Bank of Mexico and the International Monetary Fund.

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