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Banco de México: Sep-23

• The unsurprising decision to maintain the overnight interbank interest rate at 11.25% by Banco de México is aligned with the prevailing economic resilience in Mexico and persistent high levels of inflation, highlighting a balanced and watchful approach to monetary policy amid global uncertainties.
• Inflation is projected to converge more gradually to the 3% target by Q2 2025 due to enduring core inflation and potential cost-related pressures, underscoring the central bank’s commitment to monitoring and adapting monetary policy to maintain stable inflation.
• The synchronized stance of major global central banks in retaining reference rates signifies a consistent response to the ongoing economic challenges and uncertainties, emphasizing the importance of harmonized policy adjustments to manage inflationary pressures and global economic expansion prospects.

Mexico economic activity growth 3.45% y-o-y in Jul-23

- Mexico's economic activity growth in July 2023 registered a year-on-year increase of 3.45%, marking the lowest growth rate since May 2023.
- Despite the slowdown, the growth rate remains 1.40 percentage points above the long-run average, suggesting a resilient performance compared to historical norms.