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MEXICO CITY, April 25 (Reuters) - Mexico's central bank kept interest rates on hold at a record low on Friday, highlighting signs of improving growth and tame price pressures in Latin America's second economy.
The Banco de Mexico maintained its benchmark interest rate at 3.50 percent, as expected by analysts polled by Reuters.
Policymakers said downside risks to growth remain, but the balance of risks to the economy has improved marginally.
Cooling inflation after a spike in January from new taxes gives the bank more room to support weak growth, which sank to a four-year low of 1.1 percent last year. (Reporting by Alexandra Alper and Michael O'Boyle; Editing by Chizu Nomiyama)