Mexico’s Central Bank Sees Less Growth, Faster Inflation in 2020

• Mexico’s central bank slashed its growth forecast for this year and said it will take longer than expected for inflation to slow to target, suggesting policy makers have limited room to lower borrowing costs to stimulate the economy.
• Banco de Mexico said in its quarterly report Wednesday that the economy will grow as little as 0.5% in 2020 and inflation will reach its target in the first quarter of 2021, later than a previous estimate of the final quarter of this year.
• Policy makers see the economy growing between 0.5% and 1.5% this year, down from 0.8%-1.8% in the previous estimate. The central bank also cut growth forecasts for next year, to 1.1% to 2.1% from a previous 1.3% to 2.3%.

 (Source: Bloomberg)