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Mexico Policy Rate 11.0% (consensus 11.0%) in Jun-24

• Banco de México maintained the overnight interbank interest rate at 11.00%, reflecting a cautious approach amid persistent inflationary pressures and economic uncertainties.
• Headline inflation increased slightly to 4.78% by mid-June 2024, while core inflation decreased to 4.17%; inflation expectations for the end of 2024 were revised upwards for headline inflation.
• The central bank emphasized a prudent monetary policy stance, with potential future adjustments based on the evolving inflationary environment and economic conditions, focusing on achieving the 3% inflation target by late 2025.

Mexico Policy Rate 11.0% (consensus 11.0%) in May-24

• Banco de México held the overnight interbank interest rate at 11.00%, in line with economic consensus, reflecting continued caution amid mixed inflation signals and subdued economic growth.
• Despite a decrease in core inflation, headline inflation rose slightly, leading to an upward revision of future inflation forecasts and extending the expected timeline for achieving the 3% inflation target to the end of 2025.
• The central bank recognizes the prevailing economic and geopolitical risks, maintaining a restrictive policy stance while preparing for potential adjustments based on forthcoming economic data and inflation trends.

Mexico Policy Rate 11.0% (consensus 11.0%) in Mar-24

• Banco de México reduced the overnight interbank interest rate by 25 basis points to 11.00%, aligning with economic consensus, responding to decreasing inflationary pressures and the prospect of increased global economic activity.
• Annual headline inflation has decreased to 4.4% and core inflation to 4.64% amid economic dynamism and a strong labour market. The central bank is trying to foster growth while managing inflation expectations.
• The Governing Board will continue to assess economic and inflationary developments. It will maintain a restrictive policy stance in a cautious yet adaptable approach to ensure the orderly convergence of inflation to the 3% target.

Mexico CPI Inflation 4.4% y-o-y (consensus 4.4%) in Feb-24

- Mexico's CPI inflation for February 2024 stood at 4.4% year-on-year, in line with expectations. However, it marks the lowest growth rate since November 2023.
- The core CPI rate slowed by 12bps to 4.64% y-o-y, confirming the expected easing in underlying inflationary pressures.