MEXICO CITY: Mexico's central bankers were unanimous in their decision to hold interest rates at a record low earlier this month, with the majority signaling slack in the economy persists while the inflation outlook remains positive, minutes showed on Friday.
Central Bank board members voted 5-0 at their July 11 meeting to hold their benchmark rate at 3.00 percent, after delivering a surprise cut last month to underpin a weak recovery in Latin America's no. 2 economy.
Mexico's economy barely grew in the first quarter as a harsh winter dragged on growth in the United States, Mexico's top trading partner, while Mexican tax hikes hit domestic demand.
The International Monetary Fund on Thursday cut its growth projection for Mexico this year to 2.4 percent from 3 percent.
All board members said that growth in the second quarter was better than in the prior two quarters and a majority agreed that the economy should pick up in the second half of the year.
Only some members said the balance of risks to growth had improved.
A majority of policymakers said inflation would accelerated to levels near 4 percent in the second half of the year before finishing the year below that level.
Mexican annual inflation rose in early July to touch the central bank's tolerance ceiling of 4 percent, surging to a five-month high.
The majority of the board said that the US Federal Reserve could raise rates before the market expects and all agreed that uncertainty about the Fed's actions could spark greater volatility in financial markets.
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