HIGH INTEREST RATES TO LIMIT MEXICAN ECONOMIC GROWTH IN FOURTH QUARTER OF 1998.

SourceMex Economic News & Analysis on Mexico | September 30, 1998 | Copyright

A recent surge in interest rates could have negative repercussions for several sectors of the Mexican economy during the rest of this year and into next year. In mid- September, the short-term interest rates set by the Banco de Mexico (central bank) hovered near 50%, which brought interest rates on credit cards and other consumer loans close to 70%. The central bank eventually lowered the short-term rates, but the reductions were deemed insufficient to prevent a slowdown in key sectors of the economy in the last quarter of the year.

The central bank had set ...

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