“I think it’s premature to lower it now, I’m rather paying to see: I’m starting to see really visible results and we’re going to lower it,” he said in an interview with the newspaper El Universal.
The economist said that cutting borrowing costs while simultaneously raising general inflation forecasts – as Banxico did – damages expectations because analysts began to revise their price estimates upwards.
“They don’t believe us, we have to work harder on expectations, be more cautious. General inflation cannot be rising and we are lowering rates, it is contradictory, it goes against expectations,” he said. “There is no need to rush; we have to be calm, leave the rate and wait for the data to really materialize.”
