Cristobal Arias

Economist, Latin America
+44 20 7246 7878

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Mexico: Political risk to test Banxico policy

Overview

How will the Central Bank of Mexico (Banxico) react to volatility in the exchange rate as political risk mounts ahead of the July 2018 presidential election? Last year, Banxico hiked its policy rate amid both the political uncertainty generated by the US election campaign and the fears of inflation pass-through owing to the weak peso. But the Mexican economic and political backdrops have changed significantly over the past year, even though uncertainty over the NAFTA renegotiation...

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