(Recasts story, adds comments from Banxico board members) MEXICO CITY, June 2 (Reuters) - Mexican President Andres Manuel Lopez Obrador drew flak on Wednesday from one of his appointees to the central bank for his criticism of Bank of Mexico Governor Alejandro Diaz de Leon and the announcement that he would replace him at the end of 2021. Deputy Governor Gerardo Esquivel, a left-leaning economist whom Lopez Obrador had initially tapped as deputy finance minister before he nominated him to the bank’s five-member board, called the treatment of Diaz de Leon “unfortunate.” “It seems to me it adds unnecessary uncertainty to the economic and financial stability of the country,” Esquivel said during a news conference on the bank’s latest forecasts. After questioning the pedigree for the job of Diaz de Leon, who was made governor under the previous government, Lopez Obrador said last month he would not renew his term when it expires on Dec. 31. Asked about the president’s swipes, Diaz de Leon said there had been “no interference” in his decisions at the bank’s helm. Lopez Obrador, who frequently criticizes his predecessors, has contended the bank does not approve of his administration even though he has appointed the majority of its board. Known locally as Banxico, the Bank of Mexico on Wednesday upped its 2021 Mexican economic growth forecast to 6.0% from 4.8% previously, and said it expected annual headline inflation of 4.8% in the fourth quarter, versus a prior projection of 3.6%. “Challenges to economic recovery and an environment of high uncertainty still prevail, as the COVID-19 pandemic has not yet faded,” the bank said in its latest quarterly report. It added that upward revisions to global growth forecasts, particularly in the United States, progress in vaccination campaigns, including Mexico, and fewer mobility restrictions signal a more favorable outlook for the coming quarters. Risks for growth have tended to balance, though possible bottlenecks in global supply chains and higher costs caused by the pandemic are a downside risk for Mexico’s economy, it said. Mexico’s economy grew faster than initially estimated during the first quarter after contracting by 8.5% during 2020. On inflation, Banxico said the balance of risks is biased to the upside. Annual inflation was 5.80% in the first half of May, well above Banxico’s target of 3% plus or minus one percentage point, boosting the view the bank has concluded its easing cycle and is moving toward a rate hike. (Reporting by Anthony Esposito; editing by Richard Pullin) Our Standards: The Thomson Reuters Trust Principles.