MEXICO CITY, April 29 (Reuters) - Mexico's central bank would consider cutting interest rates again if inflation falls below 4 percent in the second half of the year, Banco de Mexico governor Agustin Carstens said in a radio interview on Monday.
Repeating his view that inflation is likely to fall below the central bank ceiling in the second half of the year, Carstens said such a dip would give the bank flexibility for a possible further cut.
'Perhaps once we are in that situation there would be a possibility of considering an additional move,' Carstens said, prompting traders to push the peso down to a session low.
Inflation was at 4.72 in the year through the first half of April.
Mexico's central bank cut the benchmark interest rate 50 basis points to a record low of 4 percent last month, in a bid to juice the economy and tame the peso's rise.
The central bank said explicitly the cut was not the start of an easing cycle.
The peso has risen more than 5 percent against the dollar this year, prompting markets to price in a good chance of a 25 basis point cut by the end of the year.
A Reuters poll earlier this month suggests the Banco de Mexico will keep rates on hold throughout the year.
(Reporting by Alexandra Alper, Miguel Gutierrez; editing by Andrew Hay) Keywords: MEXICO ECONOMY/
(Alexandra.Alper@thomsonreuters.com)(+5255-5282-7142)(Reuters Messaging: firstname.lastname@example.org)
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