Carstens: Banco de Mexico Prepared to Raise Rates

The transcript discusses Mexico's economic strategies in response to global events, focusing on GDP forecasts, monetary policy adjustments, and contingency plans. It highlights the Bank of Mexico's actions to stabilize the economy, including interest rate hikes and maintaining financial stability. The discussion also covers Mexico's structural reforms and their potential to boost growth, despite challenges like inflation and external threats. The importance of financial cushions, such as international reserves and IMF credit lines, is emphasized as part of Mexico's strategy to navigate economic uncertainties.

What was the revised GDP growth forecast for Mexico in 2017?

• 2.0%

• 1.72%

• 1.5%

• 1.9%

What action did the Bank of Mexico take in response to market reactions?

• Implemented trade restrictions

• Introduced new currency

• Increased interest rates

• Decreased interest rates

Which of the following is NOT part of Mexico's contingency plans for financial market turmoil?

• Large international reserves

• New tax policies

• Stabilization fund

• Flexible credit line with the IMF

What is the primary goal of the Bank of Mexico in terms of economic policy?

• Expand trade agreements

• Reduce unemployment

• Maintain financial stability

• Increase GDP growth

How does Mexico plan to tackle growth challenges in the long term?

• By reducing exports

• Through currency devaluation

• Through structural reforms

• By increasing taxes