Economists following Mexico’s economy are now eyeing higher growth and more benign inflation in 2010, taking pressure off the central bank to increase interest rates.
A monthly poll by the central bank showed economists on average expect the economy will increase 3.3% in 2010, more than an estimated of 3.1% in the previous poll.
According to the survey conducted, in spite of increasing forecast for growth, economists reduce their inflation outlook to 4.93% from 5.04%.
Moreover, the country’s central bank is hoped to increase rates in 2010 to head off inflation even though Central Bank Governor, Agustin Carstens said, “I am not that much worried about the inflation.”
Further, the Tuesday’s roll will make Carstens even less worried, as his major worry has been that higher taxes and fuel costs to increase inflation expectations.
While talking to reporters, 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.”
