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Mexico & Nafta - October 2005 (ISSN 1741-444X)
THE ECONOMY: Central bank changes policy, probably too late
The Banco de México seems to have misjudged the economy. It kept interest rates too high for too long. It has now lowered rates for two
successive months. On 23 September benchmark rates came down from 9.5% to 9.25%. The problem is that the supply-side of the economy is beginning to splutter. Lower rates and lower inflation could provide the economy with a boost going into 2006, an election year. Economic growth this year is likely to be disappointing at less than 3.5%. In the draft budget for 2006, the government is forecasting growth of 3.6%.
- López Obrador pulls ahead, above the fray
- POLITICS: PRI primary gets off to a rocky start
- THE PAN: Creel in trouble
- CABINET RESHUFFLE: Fox promotes spy chief to security minister
- VIOLENCE: Gang killings top 1,000
- THE CHURCH: More links with the drug trade
- MEXICO & THE OECD: Lagging behind
- THE ECONOMY: Central bank changes policy, probably too late
- IMMIGRATION: Border death toll surges
- HURRICANE KATRINA: The economic effects of Hurricane Katrina
- NAFTA'S ECONOMIC BENEFITS: Productivity growth disappointing
- BRIEFS: Sweeteners; Texas; TFM