Mexico central bank seen holding rates on Thursday, raising in Q4

MEXICO CITY: Mexico's central bank is expected to maintain its key lending rate on Thursday, though it is seen raising it by 25 basis points in the fourth quarter, analysts polled by Reuters said.

All 17 analysts surveyed expect the Bank of Mexico to leave its benchmark interest rate at 4.25 percent, after a 50 basis point hike in June that was aimed at calming concerns a peso slump could stoke inflation. But by the end of the fourth quarter, the rate will be at 4.50 percent, the analysts predict.

The central bank is due to announce its decision at 1300 local time (1800 GMT) on Thursday.