Mexico cenbank holds steady, says could cut if growth flags

MEXICO CITY Fri Jan 18, 2013 10:09am EST

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MEXICO CITY Jan 18 (Reuters) - Mexico's central bank left interest rates unchanged at 4.5 percent on Friday, as expected, and said it could cut borrowing costs if economic growth begins to flag.

The central bank said inflation risks had improved, after inflation came off a 2-1/2 year peak to fall below the central bank's ceiling.

The Banco de Mexico has not changed rates since mid-2009, a level reached in the middle of a deep recession and most analysts had expected no change.