UPDATE 1-Mexico central bank trims 2015 growth outlook

miércoles 19 de noviembre de 2014 15:42 GYT
 

(Adds factors behind growth revision, third-quarter growth estimate)

MEXICO CITY Nov 19 (Reuters) - Mexico's central bank on Wednesday cut its growth outlook for next year and narrowed the range of its forecast for this year, pointing to a weaker-than-expected domestic economy.

The central bank in its quarterly inflation report dialed back its growth forecast for next year to between 3.0-4.0 percent from between 3.2-4.2 percent.

Banco de Mexico Governor Agustin Carstens said the pace of growth has slowed in the third quarter from the second, pointing to less vigorous domestic demand and lower mining output, while noting that exports were holding up.

The central bank projected the economy grew about 0.6 percent in the third quarter compared to the second, down from the 1 percent quarterly rate in the May to June period. Third-quarter growth data is due Friday.

Policymakers said the economy would grow between 2.0-2.5 percent this year compared to their previous forecast for an expansion between 2.0-2.8 percent.

Annual inflation in Mexico accelerated to a nine-month high of 4.3 percent in October, but Carstens said that the pace of consumer price gains will fall below policymakers' 4 percent ceiling to close to 3 percent by the middle of next year. (Reporting by Michael O'Boyle; editing by Andrew Hay)