mexico city dec 1 reuters  the bank of mexico on wednesday raised its inflation forecast and lowered its growth expectations for this year saying the balance of risks for inflation had deteriorated and were biased to the upside banxico as the bank is known projected gross domestic product growth of 54 for 2021 down from a prior view of 62 it forecast 32 growth in 2022 up from a previous estimate of 30 the balance of risks for growth are biased to the downside and those risks include a worsening of the pandemic that prompts new containment measures as well as ongoing supply chain bottlenecks and higher input costs banxico said meanwhile average annual headline inflation for the fourth quarter is seen at 68 up from a previous forecast of 57 banxico added mexican inflation has continued to rise despite rate hikes in annual terms inflation rose faster than expected in the first half of november to more than 7 the highest rate in over two decades and more than double banxicos inflation target of 3 plus or minus a percentage point banxico raised its benchmark interest rate by 25 basis points for the fourth straight policy meeting on nov 11 taking it to 500 amid rising inflationary pressures