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Mexico Central Bank Sees Rate Rise Even as GDP Outlook Dims

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Mexico’s central bank cut its 2015 and 2016 growth forecasts following a drop in oil output, while signaling that the sluggish economy is unlikely to prevent policy makers from raising interest rates when the U.S. lifts borrowing costs.

Gross domestic product will increase 2 percent to 3 percent this year, down from the previous projection of 2.5 percent to 3.5 percent, the central bank said in the quarterly inflation report published Tuesday on its website. The estimate for next year was reduced to 2.5 percent to 3.5 percent from 2.9 percent to 3.9 percent.