MEXICO CITY, Oct 4 (Reuters) - Mexico Central Bank may opt not to follow any impending interest rate increase by the U.S. Federal Reserve if the outcome of the U.S. presidential election is favorable to Mexico, the bank’s Governor Agustin Carstens said on Tuesday.
Asked on local television whether Mexico would seek to follow a rate hike by the Fed, Carstens referred to the November election, speaking just a few days after the Mexican central bank raised its benchmark interest rate by 50 basis points.
“We’ll have to see the result of the elections, if there’s a good result, we’ve moved ahead of the Fed, and possibly it won’t be necessary to raise them (rates),” Carstens said.
Carstens said last week that a victory by Republican candidate Donald Trump would hit Mexico like a hurricane, and noted that a win by Democratic nominee Hillary Clinton would produce a more favorable scenario for the Mexican economy. (Reporting by Dave Graham)