Mexico central bank keeps rates unchanged at 11.25%

• Mexico central bank sets the benchmark interest rate at 11.25% unchanged.
• Board was unanimous on rate decision
• In order to achieve orderly, sustained convergence of headline inflation to 3% target, it will be necessary to maintain the reference rate at current level for some time.
• Inflation is projected to converge to the 3% target in Q2 of 2025.
• Balance of risks for trajectory of inflation within the forecast horizon remains biased to the upside
• Although the outlook remains complicated, progress on disinflation has been made.
• Forecasts Q4 2023 headline inflation at 4.4% versus 4.4% last.
• Inflation outlook is still challenging.
• Acknowledges progress of the disinflationary processing Mexico.
• Mexican economy has continued experiencing robust growth in the labor market remains strong

The rate remains at 11.25% for the six straight meeting.

Looking at the daily chart of the USDMXN, the last highs in the USDMXN stalled ahead of the 200 day MA (green line) at 17.536 currently. That kept the sellers more in control. In trading today, the high price stayed below its 100-day moving average of 17.4109, once again keeping the sellers more control. It would take moves above those levels to increase a bullish bias.

The low for November came in at 17.0317.