Economists following Mexico’s economy are now forecasting higher growth and more benign inflation this year, taking pressure off the central bank to raise interest rates.
A monthly poll by the central bank showed economists on average expect the economy will grow 3.3 percent this year, higher than a forecast of 3.1 percent in the previous poll.
Despite the higher forecast for growth, economists cut their inflation outlook to 4.93 percent from 5.04 percent, according to the poll which was released on Tuesday.
Mexico’s central bank is expected to raise rates this year to head off inflation even though Central Bank Gov. Agustin Carstens has said he is not that worried about inflation.
Tuesday’s poll will probably make Carstens even less worried, as his chief concern has been that higher taxes and fuel prices push up inflation expectations.
Speaking in Madrid before the release of the poll, Carstens said inflation pressures are well anchored in Mexico despite recent tax and fuel price rises and there is as yet no pressure to raise interest rates.
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