UPDATE 1-Mexico 2010 growth seen higher, inflation off-poll

(Rewrites throughout, adds Carstens’ comments, byline)

By Jason Lange

MEXICO CITY, Feb 2 (BestGrowthStock) – Economists following
Mexico’s economy are now forecasting higher growth and more
benign inflation this year, taking pressure off the central
bank to raise interest rates.

A monthly poll by the central bank showed economists on
average expect the economy will grow 3.3 percent this year,
higher than a forecast of 3.1 percent in the previous poll.

Despite the higher forecast for growth, economists cut
their inflation outlook to 4.93 percent from 5.04 percent,
according to the poll which was released on Tuesday.

Mexico’s central bank is expected to raise rates this year
to head off inflation even though Central Bank Gov. Agustin
Carstens has said he is not that worried about inflation.

Tuesday’s poll will probably make Carstens even less
worried, as his chief concern has been that higher taxes and
fuel prices push up inflation expectations.

Speaking in Madrid before the release of the poll, Carstens
said inflation pressures are well anchored in Mexico despite
recent tax and fuel price rises and there is as yet no pressure
to raise interest rates. For more see [ID:nLDE6110QK].

Investment  Analysis

(Editing by James Dalgleish)

UPDATE 1-Mexico 2010 growth seen higher, inflation off-poll