José Gabriel Cuadra García, the new deputy governor of the Bank of Mexico (Banxico), appeared before the Senate's Commission on Finance and Public Credit following his nomination. In this context, he highlighted the importance of having strong macroeconomic fundamentals, especially focused on the central bank's mandate, to face complex scenarios and promote sustainable economic growth in a stable environment.
Cuadra García addressed the impacts that the new administration in the United States, under Donald Trump's mandate, could have on various aspects. In this regard, he pointed out that low and stable inflation is crucial for creating optimal conditions that boost productive activities and foster economic growth. He also highlighted the importance of increasing productivity as a necessary public policy to achieve this goal.
Regarding the Bank of Mexico's maneuvering room in light of the actions of the Federal Reserve of the United States (Fed), Cuadra García mentioned that there are possibilities for continued cuts in the reference interest rate. He explained that the current differential between both rates is above the historical average, suggesting that there is still room for adjustments that contribute to stimulating the national economy.
When questioned about the impact of deportations on remittances and the Mexican economy, Cuadra García reflected on the implications that this phenomenon could have. He pointed out that while there are Mexicans in the United States who are not undocumented and could cushion the effect of deportations on remittances, sectors such as construction and agriculture could see their productivity affected, which would have consequences for the economic activity of both countries.
In his appearance, José Gabriel Cuadra García emphasized that the decisions he would make as deputy governor would be based on a technical analysis of macroeconomic conditions, especially regarding inflation. He highlighted his experience and accumulated knowledge in the field of macroeconomics and monetary policy, reaffirming his commitment to price stability. In this regard, he mentioned the importance of investing in infrastructure, education, and creating a conducive environment for businesses as fundamental measures to boost economic growth in Mexico.
