With the collaboration of Igor Rivera, research professor and member of the Center for Digital Evolution of the Business School of the Tecnológico de Monterrey.
If the Bank of Mexico (Banxico) takes too long to cut its reference rate, the country's economic growth could be affected, since consumption would register a negative impact, said Igor Rivera, director of the Business division of Tecnológico de Monterrey, campus Ciudad de México.
In addition, next year's federal elections in Mexico and the United States could trigger investors to decide to postpone their capital injections in the country, he said.
"Very high interest rates discourage consumption and therefore consumption could lose in the order of one percentage point and I believe that if the central bank takes a long time to adjust rates downwards, that will begin to cool down important way to the economy", he said in a meeting with journalists.
Currently, Banxico's reference rate is at 11.25 percent, the highest level since 2008, the year in which it began applying its monetary policy through the interest rate. Therefore, it is desirable that the Federal Reserve (Fed, central bank of the United States) make a first cut within three months and that will give Banxico a break to also approve one.
"And let's not end up slowing down the economy in a very important way, so that we could end up below the growth expectation of close to 2 percent", he said.
He commented that the 2024 federal elections in the United States and Mexico, where whoever assumes the position of President will be chosen, could stop investments.
"It can be one of the brakes, that is 'hey, you know what?, we do believe a lot in Mexico and we really appreciate Mexico's talent, but we are going to wait for their elections and those of the United States to know what our next move will be".
"Factor that can be a brake, the opposite of a catalyst, it can be presented as something that limits this flow of investments, it is not that they are going to disappear, some economic agents are simply going to say 'we leave the decision and wait for the following year'", Rivera declared.