Mexico cuts key interest rate to 6.25%

Banco de Mexico cut its benchmark interest rate by a quarter percentage point on Thursday to 6.25 percent, citing reduced economic pressure and inflation.

The central bank said the new rate is expected to be kept "for a prolonged period" after it declined to cut rates in August and September.

The bank's governing board said "no demand-side economic pressures are currently felt" and that its current level of monetary restriction remained in effect.

Mexico, Latin America's second-largest economy, posted annual growth of 3.2 percent in the most recent quarter, its strongest growth in three years.

On the global outlook, the board said worldwide growth expanded "at a slightly lower rate" and that uncertainty persisted because of the Middle East conflict and its impact on global markets.