Mexico central Bank official says autonomy must be respected

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Mexico central Bank official says autonomy must be respected

The president's nominee to be the next governor of the Bank of Mexico said on Wednesday that there should not be any restrictions on the autonomy of the Mexican central bank because of its importance in keeping inflation in check.

At a hearing in front of Mexican senators, Victoria Rodriguez, President Andres Manuel Lopez Obrador's pick to head the central bank, repeatedly underlined that it was imperative to uphold the independence of the bank known as Banxico.

Lopez Obrador was thrust into the limelight last week when he said he had withdrawn his previous nominee to be the next governor, raising concerns about its independence.

Inflation is a bad thing for the economy in general, but especially for the poor, according to Rodriguez.

The importance of maintaining a single mandate and respect for the Bank of Mexico's autonomy is what I want to underscore, Rodriguez said.

She argued that central bank independence had been a key factor in anchoring long-term inflation expectations in Mexico.