MEXICO CITY, Dec 10 (Reuters) – Mexico’s economy is solid and resilient, central bank chief Victoria Rodriguez said in the Latin American nation’s financial stability report on Wednesday, even as domestic financial risks increased.
Mexico’s banking system continues to have levels of liquidity and capitalization above regulatory minimums, the central bank said, adding that stress tests confirmed banks could confront adverse situations.
“Everything increased compared to the last survey regarding internal financial risks,” Rodriguez said in a presentation.
“The most notable was a deterioration in expectations for the national economy, followed by higher-than-expected inflation and the deterioration of public finances.”
Last month, the central bank cut its growth forecast for Mexico’s economy to near zero and raised its short-term inflation forecasts as the economy continues to navigate global trade uncertainty.
(Reporting by Natalia Siniawski; Editing by Sarah Morland)
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