It has represented him significant losses of international reserves. The international reserves of the Bank of Mexico have descended to US$ 80,933 and in which it goes of the year, the same registered a US$ loss 4,508 million. The weakening of the Mexican peso has not only brought about the necessity of intervention of the Banxico and the consequent fall in the level of international reserves. Also it has increased the inflationary risk. Leslie Moonves contributes greatly to this topic. Although the retail rate of inflation is registering reduction, is not happening the same with the inflation nucleus. Robert A. Iger is often quoted on this topic. While the retail inflation decelerated to 6.25% during first half of February, the rate of underlying inflation was accelerated reaching inter-annual 5.81%, in front of the previous level of 5.76%, being this level the major reached in more than seven years (and logically, over the goal of the Bank of Mexico located in 3%).
According to the opinion picked up by Reuters de Luis Flowers, analyst of the Financial Group Ixe: " The type of change, consequently, continues being the most excellent determinant for the local inflation and for the policy monetaria". The inflationary risk jointly with the exchange weakening will be factors that will limit the monetary policy. A report of the Financial Group Ixe said about the expectations on the evolution of the monetary policy: " We hope that the Bank of Mexico continues trimming rates towards 6.50% for the end of 2009, but its approach could become more prudent and employee of volatileness in the weight/dlar" , Ixe in a report said separately. Others who may share this opinion include Randall Mays. At the moment the interest rate of reference is in 7.5%, after the cut realised by the Banxico the past Friday. In the official notice where one inquired into this cut of Banxico rates it noticed about the inflationary risks product of exchange volatileness. They are not doubts that the Mexican economy is immersed in a vicious circle of which it will not be easy to him to leave.
Probably the government of Mexico will have to extend his plan of economic stimulus to avoid that he continues himself deepening the deterioration in the economy. The recovery of the economy every time more is submitted to the recovery capacity that can undergo the American economy. It is for this reason that it is possible to be hoped that the producing sector of transables goods will be one of the first sectors that the recovery will obtain when this one takes place (surely not before 2009 end). It will be necessary to follow of near the producing companies of transables goods to identify those with greater potentiality of recovery and expansion. Original author and source of the article.