(Bloomberg) — Mexican President Claudia Sheinbaum nominated Jose Gabriel Cuadra Garcia to the central bank’s five-member board, according to a document seen by Bloomberg News.
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The nomination of Cuadra, currently director of the bank’s department of economic studies, must be approved by the Senate, where the ruling party holds a large majority. The board has an empty seat since Dec. 31, when the term of Deputy Governor Irene Espinosa ended.
The Senate’s Finance Committee received on Feb. 1 the government proposal, according to the document. The Finance Ministry is aware of Cuadra’s nomination, according to a member of the communications team.
Cuadra is an economist with more than 20 years at Banxico, as the Mexican central bank is known, where he has worked as a researcher and analyst. As director of Economic Studies, Cuadra had been in charge of the models on monetary policy rules, from which proposals for monetary policy decisions are made.
“Gabriel Cuadra is a top-notch economist with plenty of experience in Banxico,” said Carlos Serrano, chief economist at BBVA Mexico. “He has deep knowledge of monetary policy and the financial system. This is a fantastic appointment that will be very well received by markets.”
Cuadra’s experience as a longtime-Banxico economist will be “crucial,” said Gabriel Casillas, chief of Latin America economics at Barclays Plc.
“He possesses the necessary academic credentials and experience to contribute meaningfully to the board’s discussions,” he added.
Casillas also pointed to a report published by Banxico in late January in which the bank said it would consider larger cuts at the year’s first meetings even while remaining in restrictive territory. The report would suggest that Cuadra maintains a dovish stance on monetary policy, he added.
Cuadra’s potentially dovish views contrast with those of Espinosa, who was regarded as one of Banxico’s most hawkish members. The nominee to the board had also been expected by some analysts to potentially be a woman in order to maintain the gender balance of the committee.
Shrinking Economy
Mexico’s central bank has cut the benchmark interest rate for its past four meetings, bringing it down to 10% as inflation slows. Banxico’s next monetary policy decision is Feb. 6, with the majority of analysts surveyed by Bloomberg expecting a 50 basis point rate cut.
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