Mexico retail sales below expectations in July

MEXICO CITY: Mexican retail sales rose less-than-expected in July as economists fret that weak domestic demand and slow growth north of the border could push policymakers to soon cut borrowing rates.

Sales rose 0.4 percent in July compared with June, lower than the 0.48 percent uptick projected by analysts.

Sales also rose slower than expected compared to a year earlier, climbing by 3.1 percent. A gain of 3.95 percent had been forecast in a Reuters poll.

The market has priced a roughly 50/50 chance that the central bank will lower rates by 25 basis points at its October meeting.

Copyright Reuters, 2011