Monday, April 30, 2007

UPDATE 5-Baffled by rate hike, Mexico govt cuts GDP forecast

(Reuters) - MEXICO CITY, April 30 - A surprise central bank interest rate hike just as Mexican inflation seemed to be easing has baffled even the government, which cut its economic growth estimate for the year to 3.3 percent on Monday.

Finance Minister Agustin Carstens told reporters on a trip to Ottawa that the central bank had jumped the gun on Friday by raising its overnight interest rate by 25 basis points in what it called a preemptive move against inflation.


Read more at Reuters.com Bonds News

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