Mexico's central bank chief sees rates on hold-paper

MEXICO CITY, April 12 (Reuters) - Mexico Central Bank Governor Agustin Carstens said in a newspaper interview published on Monday that policymakers are unlikely to raise interest rates as long as mid-term inflation expectations remain "well behaved."

Carstens said current inflation pressures from recent tax and fuel hikes was being offset by the slack in the economy, high unemployment and the appreciation of the peso.

"If expectations remain well behaved - both the end of this year and for next year - the Bank of Mexico would tend to not adjust its monetary policy," Carstens said in an interview with El Financiero newspaper.

During the first quarter of 2010 annual inflation rose to 4.75 percent, the upper limit of the central bank's target for the period.

Mid-term inflation expectations have been creeping up. According to the latest central bank poll, economists are projecting a 5.28 percent annual rate in 2010 and 3.97 percent rate in 2011.

Carstens also said he was in favor of publishing minutes from central bank meetings as long as the votes and opinions of board members were not identified by name. (Reporting by Michael O'Boyle; Editing by Theodore d'Afflisio)