Inflation core factor that guides investments in Mexico and in the world
Real Estate Market | September 09, 2022 |

Inflation reaching record highs in the world will be the central factor that will guide investment decisions, as well as the recalibration of US monetary policy, said María Ariza, general director of the Institutional Stock Exchange (Biva).

During the celebration of 'Biva Day', held in New York City, he said that the increase in the consumer price index has forced the world's central banks to recalibrate monetary policy, including the Bank of Mexico (Banxico) , which has a negative impact on the stock markets because the attractiveness of more competitive interest rates is reduced.

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"Inflation reaches historic highs in the United States, Mexico and Europe, and therefore the decision factor for all investments will be inflation, action and the recalibration of the monetary policy of the United States, the Eurozone and of course Mexico," María Ariza told businessmen and investors.

Inflation in Mexico stood at 8.62% at an annual rate in the first half of August and the interest rate is at 8.50%, analysts estimate that at the next meeting of the Bank of Mexico another 75 basis points will be increased to reach 9.25% and end at 10% levels by the end of 2022.

Therefore, he stressed that, given the current uncertainty, which is also affected by the war between Russia and Ukraine, it is essential to redouble efforts in the Mexican market to attract investments to Mexico and the stock market.

Of interest: Mexican real estate sector area of opportunity for investment

However, he acknowledged that there are many pending issues to create confidence among investors. "More attention is required to continue accompanying public investment and private initiative in this long-term vision, generating certainty for the investment environment because investment is where the growth potential is, the lack of it reduces prospects and expectations of investors to our country".

María Ariza said that the capital market in Mexico represents only 37% of GDP, so the potential to be one of the engines of the Mexican market and the growth of companies is ready to be exploited.

In Solili you can consult industrial warehouses available in Monterrey y Ciudad de México

Original note

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