UPDATE 1-Mexico inflation forecasts fall in April- cenbank

(Rewrites throughout with background)

MEXICO CITY, May 3 (BestGrowthStock) – Analysts following Mexico’s
economy cut their outlooks for inflation in 2010 while raising
growth forecasts, easing pressure on the central bank to raise
interest rates.

Mexico’s inflation rate will finish the year at 5.19
percent, according to the average forecast in a monthly poll
released by the central bank on Monday. The previous forecast
had been for 5.28 percent inflation.

The economy will likely grow 4.2 percent this year, the
poll showed, higher that the forecast of 4.1 percent in the
previous month’s poll.

The poll released on Monday was conducted in late April.

Many central bank watchers see policymakers raising
interest rates late this year to fight inflation. Consumer
prices rose 4.41 percent in the year through April 15, above
the central bank’s long-term target of 3 percent.

The central bank has said it will keep a close eye on
inflation expectations for signs of building price pressure,
but Monday’s poll results showed a more benign inflation
outlook than that seen a month ago.
Investment Research

(Reporting by Jason Lange and Robert Campbell; Editing by
Theodore d’Afflisio)

UPDATE 1-Mexico inflation forecasts fall in April- cenbank