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Asked on local television whether Mexico would seek to follow a
rate hike by the Fed, Carstens referred to the November
election, speaking just a few days after the Mexican central
bank raised its benchmark interest rate by 50 basis points.
"We'll have to see the result of the elections, if there's a
good result, we've moved ahead of the Fed, and possibly it won't
be necessary to raise them (rates)," Carstens said.
Carstens said last week that a victory by Republican candidate
Donald Trump would hit Mexico like a hurricane, and noted that a
win by Democratic nominee Hillary Clinton would produce a more
favorable scenario for the Mexican economy.
Trump has vowed to build a wall on the border with Mexico and
threatened scrap the North American Free Trade Agreement if he
wins, as well as berating U.S. firms that invest in Mexico.
By a huge margin, the United States is Mexico's main trading
partner, and economic analysts say concern over any potential
trade restrictions have weighed on the peso currency, which last
month hit a record low against the U.S. dollar.
The central bank said it had raised rates last week to contain
possible inflationary risks. Carstens noted on Tuesday that it
was important inflation did not "take off" beyond 3 percent or
that could imply higher interest rates.
The bank targets inflation of 3 percent with a one percentage
point tolerance zone on either side. In early September,
Mexico's core annual inflation rate went just above 3 percent
for the first time since late 2014.
(Reporting by Dave Graham and Anahi Rama; Editing by Kim Coghill)
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