Interest rate cut will stimulate Mexican economy: president
Reuters
Published Aug 16, 2019 09:46AM ET
Interest rate cut will stimulate Mexican economy: president
MEXICO CITY (Reuters) - Mexican President Andres Manuel Lopez Obrador said on Friday that while Mexico faced a difficult economic environment, this week's interest rate cut would stimulate Latin America's second-largest economy.
The Bank of Mexico cut its key lending rate on Thursday for the first time since June 2014, citing slow inflation and increasing slack in the economy, a decision that fueled expectations that further monetary easing could be on the way.
"This is important because it stimulates growth," Lopez Obrador said of the decision during his regular morning conference, adding that he respected the autonomy of the central bank.
Lopez Obrador also reiterated that the Mexican economy was doing well and faced neither inflation nor currency problems.
In a majority decision, the central bank's five-member board voted to lower the overnight interbank rate by 25 basis points to 8.00% although one board member voted to maintain the rate at 8.25%.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.