LatAm faces setbacks in COVID-19 response
- Mexico, one of the countries hardest hit by the coronavirus around the world, has fallen short in providing as much stimulus funding as it would have liked — and far less than in developed countries — largely because of the structural challenges that have held it and the rest of Latin America back for decades.
- In comparison, developed economies like Canada, Germany, Japan, the United Kingdom and the United States have been able to spend more on economic stimulus because of their low borrowing costs.
- Mexico's central bank cut the overnight interbank lending rate by 50 basis points to 5% on Thursday. But the US Federal Reserves cut its benchmark rate to 0.25% in March from 1.75% the previous month, while the Bank of England slashed its rate to 0.1% from 0.75% in the same period.