The general manager of the Bank for International Settlements (BIS), Agustin Carstens, presented several challenges facing central banks, including the Bank of Mexico. At an event in Mexico City, Carstens pointed out that political uncertainty and constant changes in the geopolitical landscape are significant challenges that could impact economic growth.
Carstens warned about the possibility that political uncertainty could lead to the postponement of investments by companies and caution in household spending. This, in turn, could affect growth and inflation, depending on the policies adopted.
Regarding the imposition of tariffs by the United States on Mexico, Canada, and China, Carstens stated that these measures are not favorable for growth, employment, or inflation. He emphasized that such tariffs create pressure to maintain flexibility in policies to sustain economic growth amid weak economic fundamentals.
Carstens urged central banks to be prepared to act decisively in an environment of political uncertainty. He noted that specific measures to achieve monetary and financial stability will depend on how this uncertainty evolves and the factors ultimately adopted.
In an uncertain context, Carstens warned of the possibility of increased volatility in financial markets and the importance of cooperation to address current and future economic challenges. He described the tariff measures as inadequate and highlighted the need to address economic problems collaboratively rather than in isolation, as this could generate a negative impact on various economic sectors.
In conclusion, Carstens emphasized that central banking is not a zero-sum game and that there is ample room for cooperation and action to maintain monetary and financial stability in an environment of political and economic uncertainty.
