UPDATE 2-Mexican risks to growth have eased - central bank minutes

viernes 9 de mayo de 2014 13:16 GYT

(Adds central bank view on markets, analyst comment, background on peso)

By Alexandra Alper and Luis Rojas

MEXICO CITY May 9 (Reuters) - A majority of Mexico's central bankers believe an economic recovery will continue in the coming months, though risks to growth remain, minutes of last month's board meeting released on Friday showed.

Central Bank board members voted 5-0 at their April 25 meeting to hold their benchmark rate at a record low of 3.50 percent to boost flagging growth, citing tame consumer price pressures.

"Most board members ... maintained that downside risks to growth prevail, though the balance of risks has improved marginally," the minutes said.

A majority of board members pointed to strengthening factory exports and an incipient improvement in domestic demand, while all noted an uptick in government spending.

The minutes added: "A majority of board members thought the Mexican economic recovery will continue in the coming months."

Mexico's central bank cut interest rates three times last year to spur economic growth which sagged to a four-year-low of 1.1 percent. Analysts cut their estimates for growth this year to 3.01 percent, a central bank poll showed this week.

A majority of members saw a positive shift for Mexican financial markets, but also said the U.S. Federal Reserve's rollback of monetary stimulus could drive further market volatility, the minutes said.   Continuación...