Mexico’s new central bank chief says inflation may not fall as forecast

MEXICO CITY (Reuters) – Mexico’s incoming central bank chief Alejandro Diaz de Leon on Tuesday said inflation may not fall as forecast due to recent and future shocks, and that the central bank board would focus on the most recent information to make its decisions.

Diaz de Leon, who was nominated to replace Agustin Carstens earlier on Tuesday, told Reuters in an interview that the bank’s main challenge is to get inflation back down to its 3 percent target after a spike this year above 6 percent.

The central bank holds its next monetary policy meeting in December with a few private economists predicting a hike from the current 7 percent benchmark interest rate after several months with no changes.

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