Mexico's key rate cut to benefit investment, gov't debt: president
Mar 23, 2024
Mexico City [Mexico], March 23: Mexican President Andres Manuel Lopez Obrador on Friday said the key interest rate reduction announced Thursday by the central bank will be beneficial for investment and government debt.
In his regular daily press conference held at the port of Coatzacoalcos in the eastern state of Veracruz, the Mexican president described the measure of the Central Bank of Mexico (Banxico) as "a good decision," which will benefit the economy in general.
The central bank announced on Thursday the decision to lower the key interest rate to 11 percent, the first cut in three years, as the board "acknowledged the disinflationary process under way since the last time the reference rate was adjusted."
"It helps people, businessmen invest, and it helps all of us Mexicans," the president said.
Lopez Obrador added that in terms of public finances, lowering the cost of credit would help lower the variable interest rate on government debt, as 70 percent of the total amount is recorded in pesos rather than in other currencies.
The president stressed that the Mexican currency was not immediately affected by Banxico's measures.
The bank estimated that overall inflation could reach the official target of 3 percent in the second quarter of 2025.
Source: Xinhua
