MEXICO CITY (Reuters) - Mexico faces risks to growth from any policies by the new U.S. administration that impede production chains between the two nations and cause a decline in exports and foreign direct investment, the country's central bank governor said on Monday.
In a presentation to opposition lawmakers, Governor Agustin Carstens said Mexico's liberalization of fuel prices would also have a transitory but "undesirable" impact on inflation.
He also said he did not expect inflationary pressure to arise from aggregate demand, facilitating the convergence of Mexico's headline inflation rate to the bank's target in 2018.
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(Reporting by Natalie Schachar)