Mexico’s central bank narrowed its 2015 growth forecast, saying improvement is being limited by stalled exports and weak industrial output, and that inflation will remain near policy makers’ target for two years.
Gross domestic product will increase 1.9 percent to 2.4 percent this year, compared with the previous forecast of 1.7 percent to 2.5 percent, the central bank said in its quarterly inflation report published Wednesdayon its website. Growth will then probably accelerate over the next two years, policy makers said.
While most economists surveyed by Bloomberg expect Mexico to raise interest rates in December following an expected increase by the Federal Reserve, Governor Agustin Carstens said a U.S. move doesn’t necessarily require Mexico to follow suit, given current economic conditions. The peso’s tumble to a record low has shown few signs of spurring inflation, though Carstens emphasized that the bank is watching for signs of pass-through to consumer prices.