Economics
AMLO Is Sweeping Out Inflation Hawks in Overhaul of Central Bank
- Old-line technocrats cede space to Lopez Obrador’s appointees
- Investors are piling into bonds that protect against inflation
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At first blush, it is easy to lump Banco de Mexico in the camp of hawkish developing-nation central banks that are acting swiftly to snuff out inflation. After all, on Thursday, Banxico will almost certainly hike benchmark interest rates for the second time in just two months.
But look closer and a different picture emerges: The conservative, stability-at-all-cost technocrats who’ve long held the levers inside Banxico are being forced to share power and forge consensus with a band of economists appointed by the country’s populist president. The new members are broadly seen to be more tolerant of inflation in their bid to stoke growth.