This was the deepest decline in more than a decade, due to the severe impact of the adjustment programme put in place at the beginning of the year. As a result, the government has room to increase its spending and spur economic growth during the second half of the year. The peso has stabilised at close to 6 to the dollar, and the external account has been observing an increasing surplus.
Interest rates continue to drop.
Following a pattern established in April, domestic rates in Mexico continued to fall over the last weeks. Lower inflation and stability in the exchange rate contributed to the tendency, as well as a healthy demand for peso-denominated Government obligations, which were oversubscribed by three and a half times. International reserves .