- Prior was 11.0%
- Decision was unanimous
- Disinflation process is expected to continue
- Revises 2024 year-end forecast for inflation to 4.00% from 3.6%
- Boosts core inflation in 2024 forecast to 3.8% from 3.5%
- Balance of risks to inflation within the forecast horizon remain to the upside
- Inflationary shocks are foreseen to take longer to dissipate
- Weak behaviour in Q4 2023 is expected to continue in Q1
CPI in Mexico is running at 4.65% y/y with the monthly number running around 0.2%. That's a nice mix and some good carry with an 11% policy rate, particularly if you believe in onshoring and slowly improving relations with the US and diminishing crime.
USD/MXN dipped on the decision.
