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Mexico's finance minister says 'less space' for rate cut, after U.S. fed decision - Metro US

Mexico’s finance minister says ‘less space’ for rate cut, after U.S. fed decision

MEXICO CITY (Reuters) – Mexico’s government is in close contact with the country’s central bank to coordinate a response to the impact of coronavirus on the economy, Finance Minister Arturo Herrera said on Tuesday.

Herrera said he had spoken to Bank of Mexico governor Alejandro Diaz de Leon.

“This is something that more or less had been expected,” Herrera said, referring to the decision by the U.S. Federal Reserve to cut interest rates on Tuesday in an emergency move aimed at shielding the world’s largest economy from the impact of the coronavirus..

“The rest of the countries have less space on the monetary policy side because these rates were already very low,” he said.

(Reporting by Daina Beth Solomon and Dave Graham; writing by Drazen Jorgic; Editing by Dan Grebler)

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