Mexico's Central Bank Chief: Economy is going to continue growing below its potential

Mexico's central bank chief Agustin Carstens crossed the wires last minutes, via Reuters, saying that Pick up in prices does not reflect a sustained acceleration in inflation.

Key headlines (via Reuters):

  • There are certain prices that we will have to pay attention to
  • If Banxico overreacts, Mexico could put in place higher rates than needed and impact economy
  • Peso depreciation has contributed to elements of core inflation
  • Fluctuation in exchange rate should not automatically affect prices across the board
  • Inflation expectations are well anchored