Mexico central bank can set policy independently of Fed, governor says

  • Victoria Rodríguez said Mexico’s central bank can pursue policy independently of the Federal Reserve.
  • Mexico’s economy has spare capacity, while US inflation faces pressure from demand and energy costs.
  • Government measures have cushioned Mexico’s domestic energy shock caused by the Iran war.

Mexico’s central bank can pursue a monetary policy course independent of the Federal Reserve because the two economies face different conditions, Governor Victoria Rodríguez said in an interview. The US is dealing with a strong labor market, robust demand and higher energy costs that are contributing to consumer price pressures. Mexico, by contrast, has spare capacity, while government measures have cushioned the domestic effects of energy shocks caused by the Iran war.

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