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Mexico Policy Rate 11.25% (consensus 11.25) in Nov-23

• Banco de México maintained the overnight interbank interest rate at 11.25%, in line with the economic consensus, responding to the ongoing high levels of headline and core inflation, which continue to decrease gradually.
• The decision reflects a balance between Mexico's robust economic growth and labour market strength versus global economic uncertainties, including the volatility in financial markets and sovereign interest rate movements.
• Future interest rate decisions will hinge on a range of factors, including the persistence of core inflation, foreign exchange fluctuations, global economic trends, and the effectiveness of current monetary policy in steering inflation towards the 3% target within the projected timeline.

Mexico Unemployment Rate 2.7% in Sep-23

- Mexico's unemployment rate in September 2023 decreased to 2.7%, its lowest level since June 2023.
- The current unemployment rate is 0.17 percentage points below the one-year average and 0.76 points below the long-run average, indicating a favorable labor market and potential wage growth.

Mexico Economic Activity Growth 3.7% y-o-y (consensus 3.4%) in Aug-23

- Mexico's economic activity growth increased to 3.7% y-o-y in August 2023, the highest rate since June 2023 and beyond expectations of 3.4%.
- The month-on-month growth rate for August 2023 was 0.4%, indicating a modest increase in economic activity.

Mexico CPI Inflation 4.45% y-o-y in Sep-23

- Mexico's CPI inflation in September 2023 reached a year-on-year growth rate of 4.45%, the lowest since February 2021, in line with expectations.
- The figure is 2.00 percentage points below the one-year average, indicating a more subdued inflationary environment in Mexico.