Mexico | Years of great liquidity are coming that will bring opportunities and challenges

Summary

The central banks of advanced economies had a timely and decisive reaction to the economic crisis generated by the pandemic. Not only they bring monetary policy rates close to zero, but they implemented the largest injection of liquidity in history.

Key points

• Key points:
• The Federal Reserve has been buying treasury, mortgage, and corporate bonds on a large scale
• Low interest rates result in returns on fixed income assets being at historically low levels
• Taking advantage of this liquidity would allow the Mexican government to contract debt on good terms and implement an ambitious investment program in infrastructure

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