Mexico’s central bank lowers GDP forecast to 2-3%

Mexico / AP

Mexico’s central bank has lowered its economic growth forecast for 2016 to between 2 percent and 3 percent.
That range was down from 2.5 percent to 3.5 percent in the last quarterly report.
The report released covers the final quarter of 2015. The bank now predicts lower external demand due to less dynamic industrial activity in the United States and weaker demand from other countries.
The report also lowered its forecast for 2017 to a range of 2.5 percent to 3.5 percent. That was down from a 3 percent to 4 percent range in the previous report.
The adjustment comes as the Mexican peso against the dollar and oil prices have hovered near historic lows. Mexico’s Treasury has not indicated whether it will adjust its forecast.
The Bank of Mexico is Mexico‘s central bank, monetary authority and lender of last resort. It is autonomous in exercising its functions, and its main objective is to achieve stability in the purchasing power of the national currency.
By constitutional mandate, it is independent in both its operations and management. Its main function is to provide domestic currency to the Mexican economy and its main priority is to ensure the stability of the domestic currency’s purchasing power. Its other functions are to promote both the sound development of the financial system and the optimal functioning of the payment systems.
In order to foster the sound development of the financial system and protect the public interest, Central Bank permanently monitors the institutions that comprise this system, promotes reforms to the current legislation, and issues regulations according to its law.