DIRS.INFO The most relevant business & tech news

☆ Mexico inflation still easing but rate cuts seen only next year
▼ + stars: | 2023-11-09 | by ( ) www.reuters.com time to read: +2 min

A man buys vegetables at a stall in an outdoor market in downtown of Ciudad Juarez, Mexico July 27, 2023. Consumer prices rose 0.38% in October, according to non-seasonally adjusted figures, mainly driven by core inflation including higher food, beverage and service costs. The annual headline inflation reading came in slightly below economist forecasts in a Reuters poll, which stood at 4.28%. The closely monitored core index, which strips out some volatile food and energy prices, rose 0.39% during the month, while annual core inflation came in at 5.5%, in line with market expectations. "This report strengthens our view that headline inflation will remain under control over the coming months," said Pantheon Macroeconomics chief Latin America economist Andres Abadia, but "admittedly services inflation is still a bit sticky.

Persons: Jose Luis Gonzalez, Jason Tuvey, Banxico, Andres Abadia, Gabriel Araujo, Steven Grattan, Mark Heinrich Our Organizations: REUTERS, Bank of, Capital, Sao Paulo, Thomson Locations: Ciudad Juarez, Mexico, Bank of Mexico, Banxico, America, Sao

Data from Mexico's financial products watchdog Condusef shows that the accounts would be the highest-yielding ones offered in the local financial sector. Other Latin American fintechs like Brazil's Nubank (NUN.MX) and Argentina's UALA have also launched savings accounts this year in Mexico, where data from the national statistics agency showed less than half of the population has savings accounts. The Mexican arms of Nubank and UALA both offer 9% yields on their savings accounts, already much higher than most banks. Stori expects to reach 3 million savings account holders by the end of next year, said its General Manager of New Products Sergio Duenas. ($1 = 18.0044 Mexican pesos)Reporting by Valentine Hilaire; Editing by David Alire Garcia, Christian Plumb and Marguerita ChoyOur Standards: The Thomson Reuters Trust Principles.

Persons: Marlene Garayzar, Sergio Duenas, Valentine Hilaire, David Alire Garcia, Christian Plumb, Marguerita Choy Organizations: MEXICO CITY, Wednesday, Reuters, The Bank of, New, Thomson Locations: MEXICO, Mexico, The Bank of Mexico, Nubank

☆ Mexico inflation continues slowdown in early September
▼ + stars: | 2023-09-22 | by ( ) www.reuters.com time to read: +2 min

A man sells corn grains at a public market in Ozumba de Alzate, State of Mexico, Mexico, May 24, 2022. Headline inflation in Latin America's second-largest economy hit 4.44% in the 12 months through early September, down from 4.64% at the end of August, data from statistics agency INEGI showed. If not, we're talking about the Bank of Mexico standing on just one foot," the president told a press conference. It warned that it would be necessary to maintain it for an "extended" period to meet its inflation target of 3%, plus or minus one percentage point. Mexico's economy grew 0.2% in July from June and expanded 3.2% from the same month a year before, the national statistics agency said earlier on Friday.

Persons: Edgard Garrido, Andres Manuel Lopez Obrador, Banxico, Lopez Obrador, Peter Frontini, Raul Cortes Fernandez, Brendan O'Boyle, Natalia Siniawski, Alistair Bell Organizations: REUTERS, Reuters, Bank of, Thomson Locations: Ozumba de Alzate, State, Mexico, Bank of Mexico

REUTERS/Raquel Cunha Acquire Licensing RightsMEXICO CITY, Sept 11 (Reuters) - The Mexican government's plan to run up the biggest budget deficit in decades during the 2024 general election year could put pressure on public finances and eventually threaten its credit rating, analysts said on Monday. Lopez Obrador last week backed former Mexico City Mayor Claudia Sheinbaum as his party's candidate to succeed him. Historic data show the projected budget deficit for 2024 will be the highest since 1988 as a proportion of GDP. The government's higher spending plans should bolster Latin America's second-biggest economy, which has outpaced forecasts this year, brightening the outlook for 2024. He also noted that since Mexico's current account deficit is currently considerably lower than foreign direct investment, there was a pool of untapped demand in the economy that the government could temporarily offset via higher spending.

Persons: Mexico's Finance Ministry Rogelio Ramirez de la O, Marcela Guerra, Raquel Cunha, Andres Manuel Lopez Obrador, Lopez, Patricia Terrazas, Lopez Obrador, Mexico City Mayor Claudia Sheinbaum, Gabriela Siller, Alberto Ramos, Goldman Sachs, Ramos, Raul Feliz, Feliz, Dave Graham, Diego Ore, Noe Torres, Jamie Freed Organizations: Mexico's Finance Ministry, Mexican, REUTERS, Lopez Obrador's, Action Party, PAN, Mexico City Mayor, Banco Base, Bank of, Thomson Locations: Mexico City, Mexico, MEXICO, Bank of Mexico

☆ Mexico's Election Year Deficit Plan Fuels Fear Over Finances
▼ + stars: | 2023-09-11 | by ( Sept. | At P.M. | ) www.usnews.com time to read: +3 min

By Dave Graham and Diego OréMEXICO CITY (Reuters) - The Mexican government's plan to run up the biggest budget deficit in decades during the 2024 general election year could put pressure on public finances and eventually threaten its credit rating, analysts said on Monday. Lopez Obrador last week backed former Mexico City Mayor Claudia Sheinbaum as his party's candidate to succeed him. Historic data show the projected budget deficit for 2024 will be the highest since 1988 as a proportion of GDP. The government's higher spending plans should bolster Latin America's second-biggest economy, which has outpaced forecasts this year, brightening the outlook for 2024. He also noted that since Mexico's current account deficit is currently considerably lower than foreign direct investment, there was a pool of untapped demand in the economy that the government could temporarily offset via higher spending.

Persons: Dave Graham, Diego, Andres Manuel Lopez Obrador, Lopez, Patricia Terrazas, Lopez Obrador, Mexico City Mayor Claudia Sheinbaum, Gabriela Siller, Alberto Ramos, Goldman Sachs, Ramos, Raul Feliz, Feliz, Diego Ore, Noe Torres, Jamie Freed Organizations: MEXICO CITY, Lopez Obrador's, Action Party, PAN, Mexico City Mayor, Banco Base, Bank of Locations: MEXICO, Mexico, Bank of Mexico, Mexico City

☆ Exclusive: Mexico budget sees lower growth, slower inflation in 2024 -draft
▼ + stars: | 2023-09-08 | by ( Ana Isabel Martinez | ) www.reuters.com time to read: +1 min

MEXICO CITY, Sept 8 (Reuters) - Mexico's finance ministry expects economic growth to slow in 2024 to around 2.4% from some 3% this year, according to draft budget forecasts seen by Reuters on Friday. The ministry did not immediately respond to a request for comment about the forecasts, which were in a draft document and confirmed by a source familiar with the matter. The draft was not dated, but the source said the figures were up to date. The ministry is due to present the official 2024 budget to lawmakers in Congress later on Friday. According to the document, the government estimates that headline inflation will ease to 3.8% at the end of 2024 from 4.5% at the close of this year.

Persons: Ana Isabel Martinez, Stephen Eisenhammer Organizations: MEXICO CITY, Reuters, Bank of, Thomson Locations: MEXICO, Bank of Mexico, Mexico's

☆ Mexican core inflation slows more than expected to 20-month low
▼ + stars: | 2023-09-07 | by ( Natalia Siniawski | ) www.reuters.com time to read: +2 min

That drop was off the back of lower core goods inflation, Capital Economics analyst Jason Tuvey said, while services inflation - which central bank board members have described as "sticky" - remained above 5% year over year. Annual core inflation in the second half of the month was "good news," said central bank board member Jonathan Heath on social media network X. Headline inflation edged downward to 4.64% in the month, in line with market expectations and its lowest since March 2021. That was driven by softer core price pressures, Capital's Tuvey said, but with inflation in the services sector still proving stubborn, the central bank is still unlikely to kick off an interest-rate easing cycle soon. The closely watched core price index rose 0.27% during the month (MXCPIX=ECI).

Persons: Jose Luis Gonzalez, Jason Tuvey, Jonathan Heath, Capital's Tuvey, Andres Abadia, Natalia Siniawski, Kylie Madry, Frances Kerry, Aurora Ellis Organizations: REUTERS, Capital, Reuters, of, Macroeconomics, America, Thomson Locations: Ciudad Juarez, Mexico, of Mexico

☆ Mexico's core inflation to fall to lowest level since late 2021 in August
▼ + stars: | 2023-09-05 | by ( ) www.reuters.com time to read: +2 min

Customers look at fruits at a makeshift stall in a market in Mexico City, Mexico April 8, 2022. Meanwhile, annual core inflation is forecast to have slowed to 6.12%, which would mark its lowest level since December 2021. The closely watched core price index is considered a better gauge of price trends because it strips out some volatile food and energy prices. In August alone, consumer prices likely rose 0.52% compared to July, while core inflation is forecast to have risen 0.30%, according to the poll. (MXINFL=ECI), (MXCPIX=ECI)Mexico's national statistics agency INEGI will publish consumer price index data for August on Thursday.

Persons: Luis Cortes, Bank of Mexico Governor Victoria Rodriguez, Noe Torres, Gabriel Burin, Paul Simao Organizations: REUTERS, Bank of, Bank of Mexico Governor, Thomson Locations: Mexico City, Mexico, MEXICO, Bank, Bank of Mexico, Buenos Aires

☆ Bank of Mexico again holds interest rate firm, even as region begins cuts
▼ + stars: | 2023-08-11 | by ( Brendan O'Boyle | ) www.reuters.com time to read: +2 min

The logo of Mexico's Central Bank (Banco de Mexico) is seen at its building in downtown Mexico City, Mexico February 28, 2019. The unanimous decision by the central bank's five-member board is the third consecutive rate hold since Banxico, as the Bank of Mexico is known, halted a two-year hiking cycle in May amid easing inflation. Rate cuts in Mexico are unlikely until late 2023, analysts say, even as central banks begin easing their monetary policy. Annual inflation in Mexico slowed for the sixth consecutive month in July, official data showed on Wednesday, landing at 4.79%, but still above the central bank's target. In recent weeks, central banks in Brazil, Chile, Costa Rica, and Uruguay have cut their interest rates after aggressive monetary tightening cycles.

Persons: Daniel Becerril, Banxico, Jason Tuvey, Brendan O'Boyle, Sarah Morland, Anthony Esposito, Richard Chang Organizations: Mexico's Central Bank, Banco, REUTERS, Bank of, Capital Economics, Thomson Locations: Banco de Mexico, Mexico City, Mexico, MEXICO, Bank of Mexico, Latin America, Brazil, Chile, Costa Rica, Uruguay

☆ Mexican inflation seen at lowest level in more than two years: Reuters poll
▼ + stars: | 2023-06-19 | by ( ) www.reuters.com time to read: +1 min

MEXICO CITY, June 19 (Reuters) - Mexico's headline inflation likely reached its lowest level in more than two years during the first half of June, but remained above the central bank's target, a Reuters poll showed on Monday, reinforcing bets the bank will keep the key rate steady longer. The median forecast of 11 analysts sees annual headline inflation at 5.30%, its lowest level since the second half of March 2021, although it would still be significantly higher than the official target of 3%, plus or minus a percentage point. The core index, which strips out volatile food and energy prices, is forecast to have slid to 7.02% year-on-year, its lowest level since March 2022. (MXCPIF=ECI), (MXCPIH=ECI)Mexico's statistics institute will release inflation data for the first half of June on Thursday. Reporting by Noe Torres; Additional reporting by Gabriel Burin in Buenos Aires; Editing by Sandra MalerOur Standards: The Thomson Reuters Trust Principles.

Persons: Noe Torres, Gabriel Burin, Sandra Maler Organizations: MEXICO CITY, Bank of, Thomson Locations: MEXICO, Bank of Mexico, Buenos Aires

☆ Mexico's mighty peso hits 7-year record high against U.S. dollar
▼ + stars: | 2023-05-15 | by ( Noe Torres | ) www.reuters.com time to read: +2 min

Some analysts chalk up the peso's latest gains, however, as mostly the flip side of a weakening greenback. The peso gained 0.95% on Monday to trade at 17.42 pesos per dollar, its strongest level since May 2016. President Andres Manuel Lopez Obrador repeatedly touts the peso's strength as evidence of sound macroeconomic policies, especially his administration's budget austerity and pledge to avoid taking on new debt. "A big part of (the peso's strength) is the dollar's weakness," he said, adding that the Mexican economy further benefits from growing flows of fixed investments into the country. "Mexico has shown itself to be the least ugly person at the party," quipped Gonzali, helping it attract more dance partners.

☆ Bank of Mexico likely to consider holding key interest rate steady
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +2 min

MEXICO CITY, April 25 (Reuters) - The Bank of Mexico's governing board may consider keeping its benchmark interest rate steady at its next monetary policy meeting, in what would be its first rate hold after 15 straight hikes, Central Bank Governor Victoria Rodriguez said on Tuesday. Banxico, as the Mexican central bank is known, hiked its key lending rate by 25 basis points to 11.25% at its March 29 meeting, moderating the pace of a tightening cycle that began in mid-2021 and striking a more dovish tone. For nearly two years, the bank has boosted borrowing costs to slow the rise in consumer prices. Banxico would keep close watch on so-called core inflation, Rodriguez added. "At least for the next decisions, we will not yet discuss the possibility of a rate decrease.

☆ Mexico inflation eases to 17-month low of 6.85% in March
▼ + stars: | 2023-04-05 | by ( ) www.reuters.com time to read: +2 min

April 5 (Reuters) - Mexico's annual inflation slowed in March by more than expected to 6.85%, the lowest rate in nearly 1-1/2 years, although core price pressures remained elevated, data from national statistics agency INEGI showed on Wednesday. The March reading was the lowest since October 2021, and came in below the consensus forecast of 6.90%, as determined by a Reuters poll. Still, a measure of core inflation, which strips out some volatile items, slowed less than anticipated to 8.09% from 8.29% the previous month. Month-on-month, Mexico's headline consumer price index rose by 0.27%, less than the 0.31% forecast in the Reuters poll. Banxico has raised rates by 725 basis points since its rate-hiking cycle started in June 2021 to combat inflation.

☆ Bank of Mexico hikes key interest rate to 11.25%, takes dovish tone on future moves
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +2 min

MEXICO CITY, March 30 (Reuters) - The Bank of Mexico's five-member governing board unanimously voted to hike the benchmark interest rate by 25 basis points to 11.25% on Thursday, moderating the pace of its tightening cycle and taking a more dovish tone on the future of rate moves. Banxico, as the Mexican central bank is known, removed language in its post-meeting statement that appeared in prior statements explicitly mentioning the possibility of future upward adjustments to the key rate. Over the prior 10 straight meetings Banxico had increased the key rate by 50 basis points six times and 75 basis points four times. The last time it had hiked by 25 basis points was in November 2021. We project policy rate will peak 11.5% by mid-2023, and Banxico will begin a gradual policy easing in the later part of the year," said Carlos Morales, sovereign director at Fitch Ratings.

☆ Bank of Mexico seen hiking key rate by 25 basis points on Thursday
▼ + stars: | 2023-03-27 | by ( Noe Torres | ) www.reuters.com time to read: +1 min

MEXICO CITY, March 27 (Reuters) - The Bank of Mexico is expected to moderate the pace of its monetary tightening, and hike the benchmark interest rate by 25 basis points on Thursday as inflation has shown signs of cooling, a Reuters poll showed on Monday. All 20 analysts surveyed said they expect Banxico, as the Mexican central bank is known, to increase the key rate to 11.25%, in what would be the 15th rate hike in a row. (MXCBIR=ECI)Banxico's five-member governing board unanimously voted to increase the key rate by 50 basis points to 11.00% in early February, beating market forecasts, citing a complex inflation scenario. At the time, Banxico suggested that while its rate hiking cycle was not over, future increases could be smaller. Banxico has raised its key interest rate by 700 basis points to 11.00% since its rate-hiking cycle started in June 2021 to combat inflation.

☆ Mexican central bank poised for lower rate hike
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +2 min

"And, thus, limiting the next decision by referring to a policy rate adjustment of lower magnitude implies a high and costly risk of correction if the assumptions do not materialize," she said. In the minutes, board members underscored their concern over core inflation, which strips out some volatile food and energy prices, even as headline inflation has eased. "Most members pointed out that core inflation, which reflects inflation's trend more accurately, still does not show a downward trend. All five board members expressed concern that core inflation was more persistent than expected. The latest inflation data, released on Thursday, showed a slight easing, with annual core inflation down to 8.38% in the first half of February from 8.46% in the second half of January.

Banxico, as the Mexican central bank is known, has raised its benchmark interest rate by 700 basis points since its rate-hiking cycle started in June 2021, as inflation surged far beyond its target of 3%, plus or minus 1 percentage point. Initially Heath, who is regarded as one board's most hawkish members, expected to vote for a 25 basis points hike at the last meeting, until incoming data painted a "less benign" picture for inflation. He added that new information could sway Banxico's board members one way or another before the March 30 meeting. "Frontloading" with a half percentage point hike sought to keep that jump in services inflation to a one-off situation, said Heath, noting he saw price pressures starting to transition to more local and domestic factors from the predominantly global factors seen in recent years. Reporting by Anthony Esposito and Noe Torres; Editing by David HolmesOur Standards: The Thomson Reuters Trust Principles.

Annual headline inflation in the first half of the month reached 7.94%, beating both the 7.77% recorded in the month of December and economists' forecasts of 7.86%, though still below the two-decade high of 8.70% registered in August and September. That means annual inflation remains far above the Bank of Mexico's target rate of 3%, plus or minus one percentage point. It is unlikely that the bank will make any cuts to the interest rate in the next six months, Bank of Mexico board member Jonathan Heath said in an interview last week. In the first half of January, according to statistics agency INEGI, consumer prices rose 0.46% compared to the previous two-week period, while the core index rose 0.44%, both also exceeding market estimates. Mexico's Latin American peer Brazil, where monetary tightening is on pause, also released mid-month inflation data on Tuesday, with prices slightly beating market forecasts.

☆ Banxico nominee Mejia pledges independence at congressional hearing
▼ + stars: | 2023-01-18 | by ( ) www.reuters.com time to read: +1 min

MEXICO CITY, Jan 17 (Reuters) - A nominee of the Mexican government to join the Bank of Mexico's governing board, Omar Mejia, backed the central bank's monetary tightening policies on Tuesday and promised transparency and independence if chosen for the role. "It is crucial to preserve (the bank's) autonomy and maintain a strict respect for it in order to guarantee the institution's credibility," Mejia told a congressional committee. Since then, the Banxico board has increased Mexico's benchmark interest rate by a total of 650 basis points. The lower house committee voted in favor of advancing Mejia's nomination, which must be approved by the full chamber and then the Senate before Mejia can join the Banxico board. Reporting by Brendan O'Boyle; Editing by Isabel WoodfordOur Standards: The Thomson Reuters Trust Principles.

☆ Mexico inflation below forecasts in December, core inflation cools
▼ + stars: | 2023-01-09 | by ( ) www.reuters.com time to read: +2 min

MEXICO CITY, Jan 9 (Reuters) - Mexico's headline inflation ended 2022 slightly below analysts' expectations, while core inflation finally appeared to have peaked, data from the national statistics agency showed on Monday. Annual headline inflation in December reached 7.82%, up moderately from 7.80% in November, but still below the record 8.70% reached in August and September. (MXCCPI=ECI)Economists polled by Reuters had expected annual headline inflation to come in at 7.86% and core inflation at 8.36%. On a monthly basis, core inflation was 0.65% in December. (MXCPIX=ECI)Meanwhile, monthly headline inflation was 0.38% in the period, according to non-seasonally adjusted figures.

☆ Analysis: Is the party over? Mexico's peso could lose solid gains in 2023
▼ + stars: | 2022-12-29 | by ( Noe Torres | ) www.reuters.com time to read: +2 min

MEXICO CITY, Dec 29 (Reuters) - Mexico's peso, which is ending 2022 with one of its strongest performances in a decade, could have its gains wiped out in 2023 after an expected end to the Bank of Mexico's rate hikes cycle and a possible recession in top trade partner the United States. "The carry trade, the phenomenon that has benefited (the peso) this year, will likely dissipate a bit," said CI Banco analyst James Salazar. The carry trade refers to a trading strategy of taking advantage of yield differences between Mexico and other economies. Traders at the Chicago Mercantile Exchange, considered a bellwether of market sentiment, have started to bet the peso will begin depreciating. Reporting by Noe Torres; Writing by Anthony Esposito; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

MEXICO CITY, Dec 15 (Reuters) - The Bank of Mexico raised its key interest rate by an expected 50 basis points to a record 10.50% on Thursday, tempering its monetary tightening pace amid a slowdown in inflation while suggesting it could hike rates at least once more. The decision follows four consecutive 75-basis-point hikes and comes after the U.S. Federal Reserve increased its key interest rate by 50 basis points Wednesday after four consecutive hikes of its own of three-quarters of a percentage point. "The board considers it will still be necessary to raise the reference rate in its next monetary policy meeting," said Banxico, as the Mexican central bank is known. "Subsequently, it will assess if the reference rate needs to be further adjusted as well as the pace of adjustments based on the prevailing conditions," it added. Banxico reiterated that inflation is projected to converge to its 3% target in the third quarter of 2024.

☆ Mexico to hike minimum wage by 20% in 2023, raising inflation worries
▼ + stars: | 2022-12-02 | by ( ) www.reuters.com time to read: +2 min

MEXICO CITY, Dec 1 (Reuters) - Mexico will raise the minimum wage by 20% next year after employers, labor representatives and the government reached an agreement, officials said on Thursday, although some critics warned the move could fuel inflation. The latest minimum wage increase was calculated taking inflation into account, particularly price increases for basic goods, Lopez Obrador told reporters, playing down inflation concerns. Gabriela Siller, an economist at Banco BASE, pointed to three reasons why she believes the planned wage increase will pressure inflation further, even if some salary hike was already baked into inflation forecasts. Luis Munguia, head of Mexico's National Minimum Wage Commission (CONASAMI), said prices are expected to stay virtually flat because labor costs are already low in Mexico. Salaries in Mexico remain far below U.S. levels, where the federal minimum wage stands at $7.25 an hour.

☆ Mexico economy grows 0.9% in Q3 but momentum seen easing on tighter conditions
▼ + stars: | 2022-11-25 | by ( ) www.reuters.com time to read: +2 min

Nov 25 (Reuters) - Mexico's economy grew 0.9% in the third quarter from the previous three-month period, national statistics agency INEGI said on Friday, boosted mainly by the primary sector and despite an ongoing aggressive monetary tightening cycle. Repeating a trend seen in the previous quarter, Latin America's second-largest economy posted across-the-board growth in the period, with primary, secondary and tertiary sectors expanding 2%, 0.6% and 1.1%, respectively. Tighter monetary conditions, however, are seen slowing down Mexico's GDP growth ahead, and President Andres Manuel Lopez Obrador has recently asked the central bank to balance fighting inflation with the need to protect economic growth. In annual terms, INEGI said, the country's economy expanded 4.3% in the third quarter compared to a year earlier, beating expectations of 4.1% growth from economists polled by Reuters. Separately, data showed on Friday that Mexico's economic activity grew 0.7% in September from August and 5.2% from September of 2021, both also ahead of market projections.

☆ Mexico headline inflation seen easing in early November, core inflation up
▼ + stars: | 2022-11-22 | by ( ) www.reuters.com time to read: +1 min

The median forecast of 16 analysts sees annual headline inflation slowing to 8.24% from the 8.28% recorded in the second half of October. While annual inflation continues its deceleration from a peak of 8.77% in the second half of August, core inflation is now expected to rise to 8.60%, a level not seen since August 2000. Meanwhile, headline consumer prices are expected to have risen 0.65% in the period. The forecasts keep annual inflation far above the Bank of Mexico's target of 3% plus or minus one percentage point. Mexico's statistics institute will release inflation data for the first half of November on Thursday at 6 a.m. (1200 GMT).

Search resuls for: "The Bank of Mexico"

25 mentions found