Analyst, Mario Correa at Scotiabank explains that Mexico is grieving the losses suffered as a consequence of two terrible earthquakes in September and suggests that it is still too early to determine the likely effects on the macroeconomic landscape, but they think they will be relatively small.
“Some of the recent economic indicators present conflicting results that could imply the Mexican economy is slowing down; while others point the other way. We see the positive balance prevailing, and thus we are once again raising our GDP forecasts.”
“Contrasting with the market’s view that monetary policy will be rapidly eased in 2018, we still expect Banco de Mexico to increase its reference interest rate a couple more times.”
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