UPDATE 1-Mexico's central bank holds interest rates steady

(Adds quotes from central bank)

MEXICO CITY Aug 20 (Reuters) - Mexico's central bank said it will keep interest rates low to boost the country's still weak economy and warned that manufacturing could slow because of weaker U.S. demand for Mexican exports.

The rate decision on Friday was widely anticipated, but the comments on growth suggest policy-makers are in no hurry to follow other Latin American countries like Brazil and Chile in raising borrowing costs.

Mexico is limping back from its deepest recession since 1932 after its economy contracted 6.5 percent in 2009. Growth this year has been tepid and mostly powered by U.S. purchases of Mexican exports like cars and televisions.

Regarding the economy in the United States, which buys about 80 percent of Mexican exports, the central bank said: "Everything points to a economic slowdown going forward."

"In Mexico, manufacturing output and exports continue to grow at accelerated rates, but considering the U.S. outlook, this growth could moderate," the bank said in a statement.

In its statement, the central bank held its target for overnight bank lending at 4.5 percent, the lowest level since policymakers began targeting the rate in January 2008.

The decision at the bank's monthly policy review was unanimously expected by 25 economists consulted in a Reuters poll. (Reporting by Jason Lange, Editing by W Simon )