Mexico central bank warns economy faces risk of ‘loss of confidence’ – Reuters

In its quarterly report published late-Wednesday, the Mexican central bank (Banco de Mexico) warned about the medium and long-term risks to Mexico’s growth outlook that could be affected by “public policies that create worry in markets and a loss of confidence in Mexico as a destination for investment.”

When asked about that warning by a reporter at a news conference, Mexican central bank Governor Alejandro Diaz de Leon noted: “We must promote certainty, clarity.”

He added: “Investment commits resources over distant horizons and because of this it is important to have clarity. A clear strategy and a clear execution contribute to generating an environment more conducive to investment.”

Additional Details:

The central bank slightly revised downward its economic growth forecast for next year to between 1.7 percent and 2.7 percent.

The bank also raised its 2019 inflation forecast, projecting that the annual rate would remain above 4 percent in the first half of the year.