Mexican Central Bank stalls in face of economic slump
Though financial publications have focused primarily on the Fed in recent weeks, with heavy speculation about the next chairman after Larry Summers withdrew his name from consideration, it is still vital for investors to keep track of market fluctuations internationally as well. For example, while the U.S. economic recovery has admittedly been slower than analysts initially projected, this nation is still in a much more promising position than many other countries. As such, desperate as the Fed's attempts to stabilize the market may seem, there are legislators abroad who are debating much more drastic approaches.
Bloomberg has reported that the Mexican Central Bank is currently deliberating reducing its interest rate further after the record low of 3.75 percent set on September 6.
"Given the Fed's no-taper decision earlier this week, the appreciation of the peso since the rate cut and the destruction caused by hurricanes Ingrid and Manuel, I think that the central scenario has to be that we will see another rate cut," prominent Mexican economist Alonso Cervera posited in an email to the news outlet.
This speculation comes in response to Mexico's slow economic recovery, which has reportedly reached a three-year low.
Just as the decisions made by the Fed affect investors around the world, in today's global marketplace, remaining abreast of such international policy shifts is essential. If you are concerned about your holdings, whether they are nationally based or distributed overseas, portfolio analysis software like SmartStops can help you limit losses by informing you of potential risk areas in the market.