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MEXICO CITY, April 23 (Reuters) - Mexican Central Bank Governor Agustin Carstens said on Thursday that policymakers are balancing the weak local economy's need for low borrowing costs against the pressure to act if the Fed lifts borrowing costs.
Still, policymakers will not hesitate to hike interest rates if inflation is threatened by weakness in the peso due to bets for higher U.S. interest rates, Carstens said in testimony before senators. (Reporting by Luis Rojas)