Mexico party chief rules out tax reforms in interview that hits peso currency

Reuters scored an exclusive interview with the head of Mexico’s ruling party in which he said it will not support further tax reforms “under any circumstances” just days after the central bank governor said long-term reform was urgently needed. The conservative ruling party has been the main force pushing for tax reforms in recent years but is expected to lose heavily in mid-term elections next month and the interview showed it is losing interest in unpopular change even though the country has very low tax revenues. Traders said the interview on June 9 contributed to a sharp slide in the peso currency. S&P has signalled a possible downgrade of Mexico later this year if it is unable to contain growing fiscal problems.