PERSPECTIVES OF MEXICO’S ECONOMY
YORK, England, 20th April 2016.- The Deputy Governor of the Bank of Mexico (BANXICO, for its acronym in Spanish), Manuel Sanchez, shared with economic, financial, academic and diplomat representatives from the United Kingdom, information about the performance and perspectives of Mexico’s national economy.
During a three day working-visit, the BANXICO Deputy Governor reassured to officials of the Bank of England, as well to representatives of financial institutions, the fact of the low inflation levels and the stability of services and products costs are maintained in Mexico as a result of carrying out a macroeconomic policy and a rigorous fiscal discipline to cope with the great volatility and uncertainty of the international finance panorama.
As part of the public lecture offered yesterday at the University of York, he explained that Mexico has followed a coherent monetary policy, adjusting interest rates, according to its economic policies and its inflation annual goal of 3 per cent.
He was referring to BANXICO’s decision of increasing –in February- by 50 basis-points its interest reference rate, which was implemented along with a cut to public expending, backing the Mexican peso.
The Deputy Governor explained that nevertheless, unlike other emerging economies whose currencies have also depreciated against the dollar by external factors and by the lower oil prices and other commodities, prices of goods and services considered in the index of consumer prices (IPC, for its acronym in Spanish) have not increased.
In the conference attended by students and academics, Sanchez said that despite the undeniable impact on public finances, which largely depend on the income from oil and gas, domestic and foreign investors have endorsed their confidence in Mexico, whose economic potential in medium and long-term depends on the implementation of structural reforms that will lead to greater efficiency in sectors such as energy and telecommunications.
Beforehand, the Mexican Deputy Governor met with his British counterpart Ben Broadbent, with financial analysts from Standard Chartered in The City, as well as with the Ambassador of Mexico in the United Kingdom, Diego Gomez-Pickering, with whom he remembered how sectors such as trade and tourism are growing, factors which, together with the recovery of the US economy, fuel the expectation of recovery.