The central institute has credibility: BBVA

▲ Carlos Serrano, chief economist at BBVA. Photo @BBVAPrensa_mx

Julio Gutiérrez

La Jornada Newspaper, Sunday, August 31, 2025, p. 14

The Bank of Mexico's (BdeM) mandate should remain unchanged, and there should be no discussion about whether the institution needs to foster inflation and economic growth, says Carlos Serrano, chief economist at BBVA México, the largest bank operating in the country.

In an interview on the occasion of the 100th anniversary of the founding of the Bank of Mexico (BdeM), Serrano noted that its importance lies in the fact that economic agents have confidence in the stability of the currency.

Do you think the mandate given to the Bank of Mexico by the constitution should remain as it is, or would it be appropriate to discuss it?

–The mandate is adequate; I wouldn't open the debate. In particular, I think Mexico shouldn't have a dual mandate. I believe the current mandate of keeping inflation low and stable has resulted in significant credibility for the currency. If we look at market expectations of how prices will evolve over the next 5 to 8 years, well, those are expectations of low inflation.

"Of course, the framework for action or the way monetary policy is conducted can be discussed, but the objective of the Bank of Mexico and its constitutional framework should not be open to discussion, because it is a framework that works, and works very well."

What do you consider to be the importance or significance of having an institution like the Bank of Mexico in the country?

–It's of fundamental importance; it's possibly the institution with the greatest credibility and professionalism. Having an institution like the BdeM means that economic agents—that is, businesses, families, and investors, both domestic and foreign—have confidence in the stability of the currency.

“Trust allows people to make transactions, allows for savings, and allows investors to invest in Mexican debt.

"If we thought there was no stability, that there could be episodes of very high inflation, then no one would be willing to invest in government bonds, for example, because they could lose value quickly."

▲ Paulina Anciola, deputy director of economic analysis at Banamex. Photo: La Jornada

Julio Gutiérrez

La Jornada Newspaper, Sunday, August 31, 2025, p. 14

At this time, the Bank of Mexico's (BdeM) mandate—to ensure low and stable inflation—should remain unchanged, says Paulina Anciola, deputy director of economic analysis at Banamex.

For the specialist, the central bank already contributes to economic growth by ensuring price stability, and notes that the actions it takes have helped preserve Mexico's macroeconomic stability.

Do you think the mandate given to the Bank of Mexico by the constitution should remain as it is, or would it be appropriate to discuss it?

–It would be very important not to make any changes. It's understood that the topic of dual mandate is a topic of discussion, sometimes more intensely than others.

"That's logical if we consider that other central banks have this dual mandate of boosting growth and controlling inflation, as is the case in the United States. But for Mexico, it would first be very important to achieve its sole objective, which is to keep inflation at 3 percent; we haven't seen that happen."

"But, even though it's not part of the mandate itself, economic growth is ultimately taken into account in the decisions it makes, because it's a determinant of inflation. So, just because it's not part of the mandate doesn't mean the central bank doesn't care about growth."

What do you consider to be the importance or significance of having an institution like the Bank of Mexico in the country?

–It has been one of the pillars of macroeconomic stability in Mexico, at least for the past 25 years, since it became autonomous. Significant because of the people who have led it; it is globally recognized for the high caliber of officials who have passed through its ranks.

“A big test of why having an autonomous central bank works is what happened to inflation, which was in double digits in the 1980s and has been around 4.5 percent for the past 20 years. That's the main test of why it's important.”