Mexican president says rates must fall more to spur loan requests

BY Reuters | ECONOMIC | 10/23/20 09:13 AM EDT

MEXICO CITY, Oct 23 (Reuters) - Mexican President Andres Manuel Lopez Obrador said on Friday that interest rates are still high and need to fall further in order for people to take out loans.

"Interest rates remain high," Lopez Obrador told a regular news conference. "The Bank of Mexico is lowering them, but they need to come down further for people to ask for loans." (Reporting by Dave Grahama)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.