Mexican president says rates must fall more to spur lending

BY Reuters | ECONOMIC | 10/23/20 09:47 AM EDT

MEXICO CITY, Oct 23 (Reuters) - Mexican President Andres Manuel Lopez Obrador said on Friday that interest rates are still high and must fall further for people to take out loans and help the economy recover from the effects of the coronavirus pandemic.

Speaking at a regular news conference, Lopez Obrador said the economy was making up ground lost in the pandemic, but that the country was in a "crisis situation".

"Many people don't want to get into debt, they're being very prudent, both citizens and entrepreneurs, because interest rates remain high," he said. "The Bank of Mexico is lowering them, but they need to come down further for people to ask for loans."

The Bank of Mexico has cut its benchmark interest rate for 11 consecutive monetary policy meetings since August 2019 in a bid to stimulate an economy that was already in recession when it was hammered by the pandemic.

The central bank trimmed the rate by 25 basis points to 4.25% at its Sept. 24 monetary policy meeting to its lowest level in over four years. (Reporting by Dave Graham; Writing by Anthony Esposito)

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