Mexico's Senate Approves Cuadra to Central Bank Board
Mexico's Senate confirmed Jose Gabriel Cuadra Garcia to the central bank's board on Wednesday, ahead of the first monetary policy meeting of the year. Cuadra, nominated by President Claudia Sheinbaum, received unanimous support with 114 votes in favor.
Background and Expertise
Cuadra, an economist with over 20 years at Banxico, replaces Deputy Governor Irene Espinosa. As Director of Economic Studies, he led the development of monetary policy models used in decision-making.
Economic Outlook and Interest Rate Decision
Economists surveyed by Bloomberg largely anticipate a 50 basis point interest rate cut to 9.5% on Thursday. The decision is influenced by cooling inflation and slower economic growth, which could worsen if tariffs are imposed on Mexico by the United States.
Inflation moderated to 3.69% in early January, below Banxico's target of 3% plus or minus one percentage point. However, economic growth contracted by 0.6% in the fourth quarter, marking the first decline since 2021.
Contrasting Views
Cuadra's dovish leanings differ from those of his predecessor, Espinosa, who was known for her hawkish stance. Some analysts had also expected a female nominee to maintain gender balance on the committee.
"Cuadra has extensive experience, credentials, and comes from the bank itself," commented Gabriela Siller, Director of Economic Analysis at Grupo Financiero Base.