Central Banks

Mexico’s central bank governor says maintaining sustainable public
finances is important and is respectful of federal government’s
management of fiscal policy

  • says drop in commodity prices, in particular oil, has reduced emerging economies’ room for manoeuvre when deciding debt and fiscal policy
  • says bank will hold its usual monetary policy meeting on May 14 despite out-of-cycle rate cut this week, will continue to evaluate and take actions it deems necessary
  • says access to financing is an important alternative for individuals, households and firms who have seen their income reduced
  • says highly unlikely that big personal spending decisions will be made now despite lower cost of financing after rate cuts
  • says challenge is getting through short-term crisis, and as economy gradually returns to normal it will be important to give liquidity, financing to those who need it
  • says we’re seeing a significant drop in headline inflation, in particular as gasoline prices drop
  • says in short term lower energy prices and in medium term greater economic slack could exert downward pressure on inflation
  • says in short term supply issues with certain goods and in medium term foreign exchange pressures could exert upward pressure on inflation
  • says in short term the
    impact of energy prices is clearly the dominant force on headline

Headlines via Reuters 

Banco de México Governor Alejandro Díaz de León

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