| | |  Business News | March 2009 
Mexico’s Economy to Shrink More Than Prior Forecast
 Valerie Rota - Bloomberg
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Mexico’s economy will shrink more than previously estimated this year, leading the central bank to trim its key lending rate by a larger amount, RBS Greenwich Capital Markets economist Benito Berber said in a note today.
Gross domestic product in Latin America’s second-largest economy will contract 3 percent in 2009, Berber wrote. He previously estimated the economy would shrink 0.5 percent.
Banco de Mexico will cut its target lending rate to 6 percent by the end of this year, according to Berber. Policy makers will trim the key rate by a half-percentage point to 7 percent at the bank’s next meeting on March 20, he said.
Berber previously forecast the bank would reduce rates to 6.5 percent by year-end.
To contact the reporter on this story: Valerie Rota in Mexico City at vrota1(at)bloomberg.net. |
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