Sees inflation trending back down by year end

  • 2017 growth at 1.3% to 2.3% in 2017. That is down from 1.5% to 2.5%
  • 2018 they see growth at 1.7% to 2.7% vs 2.2% to 3.2% previously
  • See inflation above target limit of 4% for most of 2017 but will trend down by year end
  • Sees inflation converging close to 3% target by end of 2018
  • Despite uncertainty, proposals mentioned by US government point to action that will obstruct relations between US and Mexico
  • uncertain environment around US policy has influenced consumer and business confidence, foreign direct investment, remittance to Mexico
  • growth outlook incorporates certain deterioration of trade flows between US and Mexico and less direct foreign investment
  • it would be costly for the economy to try to contain short-term price impacts