Mexico’s president-elect to name economist Heath to central bank

By Stefanie Eschenbacher

(Reuters) – Mexico’s President-elect Andres Manuel Lopez Obrador will propose economist Jonathan Heath as a deputy governor of the Bank of Mexico starting in 2019, incoming finance minister Carlos Urzua said in a statement.

Heath, a well-known private economist who was previously chief economist for HSBC bank in Mexico, would replace board member Manuel Ramos Francia whose term ends this year.

Leftist Lopez Obrador, who promises to fight corruption and strip back public sector excesses, won a landslide victory earlier this year and will take office in December.

His pick for finance minister Urzua told Reuters in June that Lopez Obrador would aim to bring “fresh blood” to the central bank’s board but he rejected the idea that the Bank of Mexico should change its sole mandate of focusing on price stability.

More nationalist in his outlook than the current government, Lopez Obrador’s populist instincts stirred concerns that he could steer Mexico away from a commitment to the orthodox economic policy seen in recent decades.

But Gabriel Casillas, chief economist at Banorte bank, said he thought Heath showed the president-elect was serious about central bank autonomy.

“He has the academic credentials, the experience, and a full market recognition to become a great board member,” Casillas said.

Heath created the first purchasing managers index for Mexico and has taught economics in several universities.

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