Mexico inflation, growth view lower

Analysts following Mexico's economy lowered their expectations for 2011 inflation and trimmed their forecast for growth, a poll showed on Friday, giving policymakers more room to keep rates on hold. The monthly survey, carried out by the central bank in late June, showed consumer prices expected to rise 3.56 percent this year, down from a forecast of 3.67 percent the previous month.
Analysts' forecasts for 2011 economic growth were an average 4.31 percent, slightly lower than the 4.37 percent expected in the last poll. Mexico has been blessed with low inflation that is the envy of its regional peers, some of which have been raising interest rates to contain price pressures. The central bank has a long-term target of 3 percent annual inflation, and the combination of muted prices and a weaker growth outlook should encourage policymakers to keep rates low.