(Bloomberg) — President Andres Manuel Lopez Obrador expressed his wish that the central bank help boost growth just as the monetary authority comes under new leadership and Mexico’s economic recovery falters amid a tighter monetary policy.
“One job of the bank is to control inflation and the other, which we would like very much to see, but we are only giving an opinion, is that it also helps to boost growth,” the president known as AMLO said at his daily news conference on Thursday. “Inflation can be controlled but if there isn’t growth we don’t make progress.”
The president made his remarks after the bank’s new governor, Victoria Rodriguez Ceja, reiterated at the same news conference her commitment to stick to Banxico’s inflation-targeting mandate.
Read More: Mexico Closer to Recession After Surprise Economic Contraction
AMLO said, however, that the central bank has autonomy to decide on monetary policy and that “we will always respect its decisions.”
Banxico unexpectedly accelerated the pace of monetary tightening earlier this month, delivering a 50 basis-point hike to its key interest rate to fight inflation.
(Updates with AMLO’s quote and context.)
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