The governor of Banxico sees no contagion in Mexico from the US banking crisis

MERIDA, Mexico (Reuters) – Bank of Mexico Governor Victoria Rodriguez said Friday Mexico’s banking system is sound and vowed to remain vigilant, but stressed there was no reason for authorities to intervene at this time.

Rodriguez, a former Deputy Treasury Secretary, was asked about possible contagion from the collapse of US lenders Silicon Valley Bank and Signature Bank and the market turmoil gripping Credit Suisse Group AG (CSGN.S).

The failed US banks are regional lenders and have no systemic impact, Rodriguez told Reuters in an interview on the sidelines of Mexico’s annual banking conference in the southern city of Merida.

She said, “The relationship between them and the Mexican system is practically non-existent… We don’t see any contagion or banks that are in a similar situation in our country.”

When asked about the latest inflation data in Mexico and what it could mean for interest rates, Rodriguez noted that the February inflation data was good news and stressed that the upcoming data needs to be considered before the bank’s next monetary policy decision.

“There is still relevant information that will emerge and we will analyze it,” Rodriguez said.

Core consumer price inflation in Mexico slowed more-than-expected to 8.29% in the year to February, data from statistics agency INEGI showed last week, bringing some relief as Latin America’s second-largest economy struggles with high inflation and high interest rates has.

Reporting by Valentine Hilaire and Noe Torres; Editing by Anthony Esposito and Cynthia Osterman

Our standards: The Thomson Reuters Trust Principles.

Source