UPDATE 2-More peso losses may fan inflation -Mexico central bankers
(Adds central bank comments on risks to growth)
By Michael O'Boyle
MEXICO CITY Nov 14 (Reuters) - Most of Mexico's central bankers expect a spike in inflation will fade early next year but were concerned that deeper losses in the peso could fan inflation, minutes of the bank's recent meeting showed on Friday.
Central Bank board members voted 5-0 at their Oct. 31 meeting to hold the benchmark rate at a record low of 3.0 percent, the minutes said.
The majority of policymakers thought that a recent rise in inflation above the central bank's 4 percent ceiling would cool to around the bank's 3 percent target by the middle of next year. But among risks, they singled out the peso.
"The majority pointed to the possibility that new episodes of volatility in financial markets could lead to a even greater depreciation of the exchange rate than seen in the last weeks," the minutes said.
A weaker peso could drive up inflation via higher import prices.
Mexico's peso slumped to a 2-1/2 year low early this month amid expectations that higher interest rates in the United States could sap demand for emerging market assets.
Annual inflation in Mexico accelerated to a nine-month high of 4.3 percent in October. Continuación...