By Brendan O’Boyle

MEXICO CITY (Reuters) -The Bank of Mexico cut its growth forecast for Mexico’s economy to close to zero on Wednesday, amid bets by the bank’s board that the country’s weak economy will help bring sticky inflation to target.

In its third quarter report published on Wednesday, the bank forecast the gross domestic product of Latin America’s second largest economy growing just 0.3% this year, down from its 0.6% forecast last quarter. The bank maintained its forecast for a 1.1% growth rate next year.

The bank in its report also slightly raised its projections for average annual core inflation for the fourth quarter of 2025 and the first two quarters of 2026. It similarly raised slightly its forecasts for general inflation for the first two quarters of 2026.

But Banxico, a

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