A New Era in Productivity and Mexico Has Room For More Rate Cuts

By Blu Putnam, Chief Economist & Erik Norland, Senior Economist, CME Group

A New Era of Efficiencies and Innovation?

• Working from home has led to increased labor productivity.
• Supply chains could be reshaped to be closer to consumers.
• Companies could see heightened innovation, creativity.
• GDP growth might rebound more quickly than employment rate.

Mexico Has Room For More Rate Cuts

• Recession-hit Mexico has cut interest rates eight times.
• Rates still remain higher than 2009-2016 average levels, top inflation.
• Will Mexico’s central bank loosen monetary policy further?
• Mexico’s peso has outperformed currencies in Brazil, Chile, Colombia.