Mexico’s Central Bank doesn’t expect a recession in Mexico or the US

Victoria Rodríguez Ceja, Governor of the Bank of Mexico (Banxico), assured this Wednesday that the national economy is not headed for a recession, this after the cut in the growth forecast for 2023.

“We are not expecting a recession in the United States or in the case of Mexico,” he said at the presentation of the quarterly report, April-June 2022.

When presenting the document, the official highlighted that inflation has continued to present unanticipated shocks, reaching levels higher than expected, which is why it is at levels not seen in two decades.

And regarding the National Consumer Price Index, Deputy Governor Jonathan Heath expressed that “the gasoline subsidy policy has helped us a lot to limit inflation, since otherwise, it could have been much higher, I don’t know if 14 percent or more because there are second-order effects.”

However, the economist warned that the “negative” part of the support for the IEPS payment of gasoline is that when gasoline prices begin to fall worldwide, this will not be reflected in Mexico.

Victoria Rodríguez explained that inflation has very important and stronger impacts on families with fewer resources.

“In this sense, Banxico’s failure to act would surely lead us to have higher inflation rates than we have,” he commented.

“I want to communicate to families and society in general that the Central Bank’s commitment is very strong and has been demonstrated in all the decisions we have made. We have indicated in our most recent statement that we will continue to increase rates in accordance with the information available and the situation prevailing at the time of the decision, and we will continue to comply with our constitutional mandate so that inflation returns to its goal, seeking to maintain the purchasing power of all families,” he stressed.

Subscribe here for as low as .08 cents per day to access exclusive content and join the PVDN Newsletter, and browse this site with fewer ads. (Why subscribe?)

Trending news on PVDN

  • Gentrification of Puerto Vallarta: Causes, Consequences, and Advantages Puerto Vallarta (PVDN) – Puerto Vallarta has been experiencing an increase in prices for rents, food, and other necessities, which could be a symptom of gentrification. For many foreigners and expats in Puerto Vallarta, these increases may seem small and still much cheaper than their home country, but it may be resulting in Mexican locals…
  • Condominium development in Puerto Vallarta is destabilizing the hydrological cycle Puerto Vallarta (PVDN) – At a recent conference on “Risks in Water Management and its Influence on the Real Estate sector of the Interstate Metropolitan Area of Puerto Vallarta and Bahía de Banderas,” Dr. Bartolo Cruz Romero, a research professor at the Centro Universitario de la Costa of the University of Guadalajara, emphasized the importance…
  • What is considered lower, middle, and upper class in Mexico? Puerto Vallarta (PVDN) – The issue of what social class one belongs to in Mexico is often a matter of debate among those who discuss it, since there are no established parameters that define the social class in Mexico. Although the National Institute of Statistics and Geography ( INEGI) identified some socioeconomic characteristics of each…
  • Playa Careyes, a foreigner’s paradise for luxurious relaxation south of Puerto Vallarta (VIDEO) Puerto Vallarta (PVDN) – Playa Careyes is a hidden gem on the Pacific coast of Mexico, located in the heart of the Costa Alegre region and 3.5 hours south of Puerto Vallarta. This secluded beach is a favorite among travelers who are looking for a peaceful and relaxing vacation away from the crowds. With its…
  • Majahuitas cove in Puerto Vallarta, one of the most peaceful places in Mexico Puerto Vallarta (PVDN) – Majahuitas is a small, secluded cove located on the southern coast of Puerto Vallarta, Mexico. It is surrounded by lush jungle and pristine beaches that make it a paradise for those seeking an escape from the hustle and bustle of everyday life. In this essay, we will explore the history, culture,…
Puerto Vallarta News

Compare Listings

Title Price Status Type Area Purpose Bedrooms Bathrooms