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MEXICO CITY, March 21 (Reuters) - Mexico's central bank kept interest rates on hold on Friday as policymakers pointed to slack in the economy while noting that a recent spike in inflation had eased and was unlikely to spur wider price pressures.
The Banco de Mexico maintained its benchmark interest rate at a record low of 3.50 percent, as expected by analysts polled by Reuters last week.
Policymakers had cut rates in September and October to boost growth, but new taxes that took effect in January drove a spike in annual inflation above the central bank's 4 percent limit for acceptable price gains. (Reporting by Alexandra Alper and Michael O'Boyle; Editing by Dave Graham)