Inflation will fall to 3% regardless of who heads Banxico: Carstens

By Elliot Bullman

The governor of the Bank of Mexico explained that by the end of 2018, inflation will be close to 3% and stressed that the rise in the minimum wage should be done prudently.

The governor of the Bank of Mexico, Agustín Carstens, guaranteed this Friday that by the end of 2018 inflation will be close to 3 percent, the goal of price stability, this regardless of who the new leader of Banxico is.

+.png

Last Thursday, the Central Bank kept its interest rate at 7 percent. This was the third monetary policy meeting in which the rate remains unchanged, at a time when inflation is at a level of 6.37 percent, way above the Bank's target range of 3 percent +/- one percentage point .

bank 3.png

After participating in the National Council of the Business Coordinating Council (CCE), the governor of Banxico stressed that they are looking for better salaries, but the recommendation is that it be done with great prudence, in such a way that it becomes in itself a boost to inflation.

The outlook for the economy has been clouded by the ongoing renegotiation of the North American Free Trade Agreement (NAFTA) between the United States, Mexico and Canada.

bank 4.png

The Banco de Mexico has raised rates to their highest level since early 2009 to counter a spike in inflation well above the bank’s 3 percent target. Board members have stressed that it is too soon to cut rates, as consumer price inflation remains high.

bank 2.png

Potential inflation risks could come from a peso depreciation if NAFTA talks are unfavourable, or market reaction to the normalization of U.S. monetary policy, the bank said.

RELATED NEWS

  • US moves to block AT&TUS moves to block AT&T's takeover of Time Warner
  • Uber Paid Hackers $100,000 for Silence On Cyberattack That Exposed 57 Million PeopleUber Paid Hackers $100,000 for Silence On Cyberattack That Exposed 57 Million People's Data
  • Minimum salary will rise 8.32 pesos in DecemberMinimum salary will rise 8.32 pesos in December
  • ZimbabweZimbabwe's President Robert Mugabe resigns after 4 decades as leader.
  • More than half of the digital native media in Mexico has suffered cyber attacksMore than half of the digital native media in Mexico has suffered cyber attacks
  • Vicente Fox warns Trudeau not to be Vicente Fox warns Trudeau not to be 'Judas' on Nafta
  • REITS unharmed and even strengthened from the REITS unharmed and even strengthened from the 'Trump storm'
  • Tesla unveils first battery powered truckTesla unveils first battery powered truck
  • US game maker launches stunt to snarl plans for border wall with MexicoUS game maker launches stunt to snarl plans for border wall with Mexico
  • Bajío, a clear example of Mexico´s digital transformationBajío, a clear example of Mexico´s digital transformation
  • Most Millennials are Faring Worse than their Parents: StudyMost Millennials are Faring Worse than their Parents: Study
  • Mexico prepares macroeconomic contingency plan in case NAFTA talks breakdownMexico prepares macroeconomic contingency plan in case NAFTA talks breakdown
WATCH LIVE TV



Most Read Articles
Most Watched Videos
  • Generations Riviera Maya
  • Mayair

Language

Mexico News Network
All rights Reserved 2017