(MENAFN) Seeking to achieve economic growth, Mexico is planning to impose reductions on its benchmark interest rate.
Mexican President Andres Manuel Lopez Obrador explained that the move reflects efforts to strengthen the local economy amid tough global environment.
During a press conference, the presidnet affirmed: "this is important because growth is stimulated this way. Lowering the benchmark interest rate further encourages investment ... and it is more profitable for productive activity."
The central bank of Mexico slashed overnight interbank interest rate to stand at 8 percent compared to the previous 8.25 percent for the first time in five years.
Lopez added: "if interest rates were lowered and there was no confidence in the Mexican economy, that could generate imbalances. But the interest rate was cut and nothing happened. In fact, even the Mexican peso went up."
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