AMLO, president of Mexico, applauds Central Bank interest rate cut.
López Obrador, who has previously said that Banxico should also focus on growth, not just inflation control, praised the latest rate cut.
President Andrés Manuel López Obrador said on Friday that the interest rate cut announced by Banxico was a “good decision.”
El presidente Andrés Manuel López Obrador dijo este viernes que el recorte de la tasa de interés de referencia anunciado por el Banco de México (Banxico) fue una “buena decisión” y a la vez “un atrevimiento”, porque en Estados Unidos la Reserva Federal no quiere moverla, argumentó.
El Banxico informó el jueves que su Junta de Gobierno decidió de forma dividida bajar en 25 puntos base su tasa de interés referencial, a un 11%, en el primer ajuste desde que inició un ciclo de endurecimiento monetario a mediados del 2021.
“They demonstrated that they are autonomous and professionals, but it was daring because interest rates in the United States are not expected to move, and here they are already being lowered, even if only slightly,” López Obrador told reporters about the stance of the Mexican central bank.
The Fed kept its interest rate unchanged between 5.25% and 5.5% on Wednesday but also maintained its forecasts for three rate cuts by the end of the year.
Banxico acknowledged on Thursday the disinflationary process since the last time the reference rate was adjusted but considered that “challenges and risks” persist, warranting the continuation of a prudent approach to monetary policy.
According to figures released on Friday, year-on-year inflation accelerated in the first half of March above expectations, standing at 4.48%, above the 4.35% in the second half of February, although far from the record of 8.77% it reached in 2022.
López Obrador, who has previously said that Banxico should also focus on growth, not just inflation control, praised the latest rate cut for the impact it could have on investment in the country. “It was a good decision.”
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