Tuesday, June 6, 2023
HomeEconomyMexican president talks strong peso, warns of high interest rates

Mexican president talks strong peso, warns of high interest rates

MEXICO CITY (Reuters) – Mexican President Andres Manuel López Obrador said on Thursday that the strength of the Mexican peso was good for the economy, but the central bank announced monetary policy after the central bank announced monetary policy. Hours before the decision, he warned that rising interest rates could hurt the economy.

Lopez Obrador said at a regular news conference that he expected to The peso will not depreciate at the end of his six-year term, adding that he sees the peso trading at 20.20 or 20.30) against the US dollar.

The Mexican peso hit a 2-1/2-year high in Thursday’s session, up 0.8% at 19. 41 per dollar.

“I’m very skeptical of the fact that the formula to reduce inflation is to raise (interest) interest rates, but that’s inconvenient for the economy because credit becomes more expensive,” the left-leaning populist leader said.

“Growth should not stop, the important thing is that growth has no inflation,” said Lopez Obrador, a frequent critic of high interest rates.

His remarks came at a meeting of the Bank of Mexico, which is widely expected to raise its key interest rate later in the day 75 bps pointing to a record 10% to curb soaring inflation.



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