Mexico central bank to keep interest rates at record low: Reuters poll

Mexico central bank to keep interest rates at record low: Reuters poll

© Edgard Garrido / Reuters

All 20 analysts consulted expect Banco de Mexico to hold its key rate at 3 percent next week.

Mexico is widely expected to raise interest rates when the U.S. Federal Reserve does in a bid to ward off a deeper slump in the peso , which has weakened due to concerns a U.S. hike will sap demand for riskier assets.

Pressure on policymakers to act before the Fed was further eased by data on Thursday that showed Mexico's annual inflation rate cooled to a record low in early October, with little impact from the sharply weaker peso.

The median of the poll showed analysts now expect a 25 basis points hike during the first three months of next year, pushing back expectations for a hike in December seen in the last poll.

The central bank will publish its rate decision on Thursday at 1 p.m. local time (3 p.m. EDT).

(Reporting by Miguel Angel Gutierrez)

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