MEXICO CITY, Sept 5 Mexico's central bank is
expected to keep interest rates steady on Friday at a record low
after signs of stronger economic growth fueled hopes of a
quickening recovery for Latin America's No. 2 economy.
All 17 analysts surveyed by Reuters expect the central bank
to hold its main interest rate at 3.00 percent on
Friday. Policymakers kept rates on hold in July after delivering
a surprise 50 basis point cut in June.
Growth wobbled early this year, as a harsh U.S. winter
hammered American demand for Mexican factory exports and a tax
hike dragged on consumer spending.
But data last month showed second-quarter growth beat
expectations thanks to a pick up in industrial activity and
domestic demand, bolstering bets that economic expansion could
reach the finance ministry's 2.7 percent forecast for 2014.
Data on Monday showed Mexico's manufacturing sector
sentiment hit a seven-month high on growth in output and
On Friday, policymakers could highlight the cheery growth
data, while still pointing to economic headwinds that will keep
consumer price pressures contained.
Annual inflation stayed above the central bank's 4 percent
tolerance ceiling in early August but eased slightly from late
Mexican Central Bank Governor Agustin Carstens said last
month he saw "very good prospects" that inflation will near the
bank's target rate of 3 percent at the beginning of 2015.
The median forecast of analysts surveyed by Reuters is for
the central bank to raise its benchmark rate 50 basis points in
the third quarter of 2015. A previous poll had forecast a 25
basis point hike in the second quarter of next year.
(Reporting by Alexandra Alper; Editing by Diane Craft)