MEXICO CITY (Reuters) – Mexico’s surprise interest rate cut shows policymakers are worried that the peso could overheat in coming years, despite their hands-off attitude toward the currency in public.
The Banco de Mexico cut interest rates by 50 basis points despite rising inflation, a move that goes against orthodox arguments that lower interest rates can fan price pressures.
WASHINGTON/MEXICO CITY, March 7 (Reuters) – Latin America
must double its spending on infrastructure and deepen regional
ties to boost growth and allow it to compete with other emerging
markets, Inter-American Development Bank President Luis Alberto
With growth in Latin America slowed by sputtering recoveries
in the United States and euro zone, Moreno said the region
needed to find ways to return to pre-crisis growth rates of
around 5.5 percent, pointing to the need for structural reforms,
more regional trade and infrastructure spending.
MEXICO CITY (Reuters) – Bumper capital inflows to Latin America are putting the spotlight on shock-proofing policies to help economies digest the rush of investment – and guard against the inevitable exit.
Foreign investment inflows to Latin America were more than $280 billion in 2012, according to balance of payment data from countries covering 75 percent of the region’s economic output, similar to the flows registered in 2011 as low interest rates in developed economies pushed investors to seek returns elsewhere.