Despite the recent peso slide and concerns about inflation and low growth in 2015, Mexico’s Central Bank board members have decided not to increase interest rates, which currently stand at a record low of around three percent.
Analysts expect year-end government estimated inflation to settle at four percent, with growth at 2.2 percent, considerably lower than the official estimates at the beginning of 2014.
The biggest threat to the economy next year, and specifically to the pocketbooks of millions of Mexicans, is the threat of inflation provoked by the weak peso, a possibility the Central Bank acknowledged this week.
But their bullish estimates that inflation will slow to around three percent by the middle of 2015 are disputed by others who claim to have closer handle on the way the economy works at a grass roots level.