This is not the time to apply for a loan, acquire something or go into debt, it is time to save and be cautious so that the restrictive monetary policy takes its cause, so that inflation goes down and the economic situation stabilizes, and then yes, power buy.
In a conversation with the deputy governor of Banco de México, Jonathan Heath, he assured that monetary policy has already reached its restrictive policy level, so it will be necessary for it to begin to have an effect on inflation.
Situation that is still expected to take a while, of at least six months, depending on factors, such as: the economic situation in the United States, the internal political situation, the economy and the fact that the Federal Reserve of the United States has already concluded with rising interest rates.
They must be maintained for even a couple of years, so that the effects are long-term.
It is still time for caution. The signal that we are sending, the deputy governor tells us, is that this is not the time to get into debt, it is for austerity, saving, eradicating the issue of inflation.
This is not the time to spend or ask for new investments, but to save, and take advantage of the high rates, so that when inflation begins to drop, then you can buy a car, acquire a new mortgage or some other purchase.
There is great evidence that the global economic indicators have improved, what we should focus on as a country is on the local indicators, such as the drop in food prices that is maintained and not momentary.
We also have to monitor the situation in the United States. The economy is not slowing down as expected and that helps, although victory cannot be claimed and if it slowed down faster it would affect us as a country, due to its importance in trade. If the US slows down, we will not be able to continue growing, even if inflation falls. It is not possible to think that we could advance.
What suits us right now is to take advantage of global changes in terms of trade. And really don’t go elsewhere.
It is necessary to look for how to improve the minimum wage in real terms, as well as the advances in labor matters, but before that, analyze the times, says Jonathan Heath, it is not yet the time due to inflationary problems.
Hence, monetary policy decisions are very independent from fiscal policy decisions, and the exchange rate remains flexible, so that there is no imbalance. Although it should be analyzed why the exchange rate remains strong and check that it is not something that causes a greater imbalance.
In short, the truth is that the external indicators will still be the order of the day to be monitored, but also the internal conditions that will have to be enforced in order for the monetary and fiscal policy to move towards economic and inflationary stability, so that the effects of confidence are translated into the use of the readjustment of investments to national territory.
