The Mexican central bank lowered its 2019 economic growth forecast to between 0.8% and 1.8% after it reported a 0.2% contraction for the first quarter of the year.

Banco de México already had lowered its growth forecast in February to between 1.1% and 2.1% from an earlier range of 1.7% to 2.7%. It maintained its growth forecast for 2020 at between 1.7% and 2.7%, but cautioned that the balance of risks leans towards the downside.

Alejandro Diaz de Leon, governor for Banxico, reportedly said that the central bank does expect economic activity "to rebound in the coming quarters," Reuters wrote separately.

The central bank also raised its inflation forecast for 2019 to 3.7% from 3.4% previously, as core inflation hit a 3.56% pace in the first quarter and accelerated to 3.87% for the month of April.

For 2020, Banxico raised its inflation forecast to 3.0% from 2.7%.