AMLO Calls on Central Bank to Keep Cutting Rates

Mexico’s President Andres Manuel Lopez Obrador said on Friday that the central bank needs to cut interest rates further to help reactivate the economy.

López Obrador affirmed that interest rates have to fall even more and that banks must offer promotions to deliver the loans.

“The Association of Banks is right. Citizens and companies are acting with great prudence. Interest rates are low and they have to go even lower. That there is a promotion to deliver the credits. I hope there will be an economic recovery soon, ”he said at his morning press conference at the National Palace on Friday, October 23.

The head of the Ministry of Finance, Arturo Herrera, reproached on Wednesday that private banks have not used “in their entirety” the credit lines offered by the Bank of Mexico during the pandemic and assured that “there is a lot of work to do.”

López Obrador highlighted that “we have achieved a slow recovery, but towards economic normality which means returning to the situation we were in before the pandemic and we are making progress. The peso appreciated at less than 21 to the dollar, when we were at more than 25 pesos; it has only depreciated 3% ”.

Source: Forbes Mexico