#1Quarterly Report April-June 2022 August 31, 2022 ODB BANCO DE MÉXICO®#2Banco de México has conducted monetary policy in an increasingly complex and uncertain environment, generated by the economic effects of the pandemic and the military conflict between Russia and Ukraine. Externally... World inflation continued increasing. In this context, most central banks kept withdrawing the monetary stimulus. Global economic activity weakened and its outlook deteriorated. Domestically... Annual headline inflation continued increasing, reaching levels unseen in decades. Economic activity continued to recover and financial markets underwent episodes of volatility. BANCO DE MEXICO In this context, Banco de México took actions to maintain longer-term inflation expectations anchored, and to foster an orderly adjustment of financial markets. BANCO MÉXICO Quarterly Report April - June 2022 1#3Outline 1 External conditions 2 Current situation of the Mexican economy 3 Inflation 4 Monetary policy 5 Forecasts and final remarks BANCO MÉXICO Quarterly Report April - June 2022 2#42015 | 2016 2017 2018 World 2019 2020 Real GDP Growth Quarterly % change, s. a. Global economic activity weakened during Q2-2022, mainly due to the continued negative economic effects generated by the military conflict, the implementation of temporary lockdowns in China to contain COVID-19 infection, and the tightening of global financial conditions. World Economy 12 12 WEO July 2022 Change from April 2022 Emerging Advanced 2022 2023 2022 2023 World 3.2 2.9 -0.4 -0.7 Advanced 2.5 1.4 -0.8 -1.0 3 0.29 United States 2.3 1.0 -1.4 -1.3 0.21 Euro area 2.6 1.2 -0.2 -1.1 -0.21 -0.96 Japan 1.7 1.7 -0.7 -0.6 -3 United Kingdom 3.2 0.5 -0.5 -0.7 -4.55 Emerging 3.6 3.9 -0.2 -0.5 -6 Excl. China 3.7 3.6 0.2 -0.5 -7.75 Emerging excluding China Mexico 2.4 1.2 0.4 -1.3 -9 -10.21 China 3.3 4.6 -1.1 -0.5 -12 India 7.4 6.1 -0.8 -0.8 -12.24 Q2-2022 Brazil 1.7 1.1 0.9 -0.3 -15 2021 2022 s. a. Seasonally adjusted figures. Note: The sample of countries used for the calculation represents 86% of world GDP measured by purchasing power parity. Forecasts are used for some countries in the sample Q2. Source: Prepared by Banco de México with information from Haver Analytics and J.P. Morgan. BANCO MÉXICO Source: International Monetary Fund (IMF), World Economic Outlook April and July 2022. Quarterly Report April - June 2022 3 World GDP Growth Forecast Annual % change#52016 2017 In most of the major advanced economies, headline and core inflation continued increasing and headline inflation remained significantly above their respective central banks' targets. Short-term inflation expectations kept increasing. Advanced Economies Annual % change Headline Inflation 12 July 11 Inflation Forecasts for 2022 United Kingdom August 10 10 6 10 United States 1/ 8 9 PCE Index 8 CPI Index 7 7 United States Л 6 5 5 United Kingdom³/ Euro area 4 3 2 1 0 -1 Euro area 4/ Japan 2/ 2018 2019 2020 2021 2022 3 Japan 2 1 0 Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. 2022 2022 2022 2022 2022 2022 2022 2022 1/ The solid line refers to the Personal Consumption Expenditure Price Index (PCE) and the dotted line shows the Consumer Price Index (CPI). 2/ Excludes fresh food. This series does not exclude the effect of the consumption tax increase in May 2014 and October 2019, nor the effect of the free daycare and preschool program in October 2019. 3/ The harmonized index is shown. 4/ Preliminary figures published for August. Source: Bureau of Economic Analysis, Bureau of Labor Statistics, Eurostat, Bank of Japan, Office for National Statistics of the UK. BANCO MÉXICO Source: Consensus Forecasts. Quarterly Report April - June 2022 4#62013 2014 2014 2015 European Central Bank 2016 2017 Central banks in most advanced economies continued to reduce their monetary stimulus, in some cases accelerating the pace of said process. Similarly, most central banks in the main emerging economies raised their reference rates. Reference Rates and Implied Trajectories in OIS Curves 1/ % Reference Rates in Emerging Economies % 15 August 14 Forecasts 4.5 Implied target rate in OIS curve: 2022 4.0 31-May-2022 30-Aug-2022 3.5 3.0 2.5 2.0 US Federal Reserve 2/ Mexico 1.5 India 1.0 0.5 Bank of Japan 0.0 -0.5 2018 2019 2020 2021 2022 2023 2024 -1.0 1/ OIS: Fixed-for-floating swap where the fixed interest rate is the overnight effective reference rate. 2/ Data for the observed federal funds rate corresponds to the average between the lower and upper bounds of the target range (2.25% -2.50%). Source: Prepared by Banco de México with data from Bloomberg. BANCO MÉXICO 3/ For China, the 1-year Loan Prime Rate (LPR) is shown. Other rates in China have also exhibited downward movements. Source: Haver Analytics. Quarterly Report April - June 2022 5 Chile Colombia 12 Brazil 11 10 9 8 7 6 China 3/ 5 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22- Jul-22 Peru 2 1 3 B 2 13#7BANCO MÉXICO 85 Jan-20 60 90 95 May-20 105 120 160 ↑ Depreciation 115 150 Mexico DXY Brazil Colombia 110 140 Peru 100 Sep-20 Jan-21 May-21 Global financial markets continued registering episodes of volatility, as well as a tightening of financial conditions. The US dollar strengthened. Long-term interest rates increased, although in some cases such trend has reversed recently. DXY Index and Nominal Exchange Rate against USD Index Jan-01-2020-100 10-year Government Bond Nominal Interest Rates % Chile Note: The DXY Index was inverted, hence an upward movement indicates a depreciation for all series. Source: Bloomberg. Sep-21 Jan-22 May-22 100 August 90 90 130 120 Mexico 110 Jan-20 May-20 Sep-20 Jan-21 May-21 Colombia United States 14 Brazil 12 6 Peru Source: Prepared by Banco de México with data from Bloomberg and Proveedor Integral de Precios (PIP). Quarterly Report April - June 2022 6 Sep-21 Jan-22- May-22 2 August 0 4 8 10#8Outline 1 External conditions 2 Current situation of the Mexican economy 3 Inflation 4 Monetary policy 5 Forecasts and final remarks BANCO MÉXICO Quarterly Report April - June 2022 7#9-6 2013 -4 2014 2015 -2 -0.55 2 4 1.26 6 1.33 Levels 13.65 3.66 In Q2-2022, economic activity in Mexico continued recovering despite the complex global economic environment and the uncertainty caused by a rebound in the number of COVID-19 infections. Gross Domestic Product 1/ Quarterly % change and index Q4-2019=100, s. a. Global Index of Economic Activity Index Jan-2020=100, s. a. 2017 2018 2019 Quarterly change -0.23 1.28 1.13 -0.04 0.47 -0.28 0.05 -0.46 -0.76 0.58 -17.96 2020 0.93 2016 0.49 0.92 0.95 -0.53 0.31 1.14 s. a./Seasonally adjusted figures. 1/ The range of the chart for the quarterly change in GDP has been narrowed to facilitate its reading. The labels correspond to quarterly percentage changes for Q2 and Q3, 2020. Source: Mexico's National Accounts System (SCNM, for its acronym in Spanish), INEGI. BANCO MÉXICO Quarterly Report April - June 2022 2021 Q2-2022 2022 76 84 100 108 116 124 92 42 Agricultural and livestock products Services 2013 2014 2015 2016 2017 s. a ./Seasonally adjusted figures. Source: Mexico's National Accounts System (SCNM, for its acronym in Spanish), INEGI. 2018 2019 2020- 2021 8 Industrial M 105 100 90 Total 85 85 2022 June 75 70 70 80 60 95 110#102015 2016 Utilities Mining Industrial activity continued its recovery, driven mainly by manufacturing. Services performed better overall, after having exhibited weakness in S2-2021. Industrial Activity Index Jan-2020=100, s. a. 140 IGAE Services Index Jan-2020=100, s. a. 130 Manufacturing Construction 2017 2018 2019 2020 2021 June 60 2022 70 10 2015 130 Trade 1/ 120 Total 110 s.a./Seasonally adjusted figures. Source: Monthly Indicator of Industrial Activity, Mexico's National Accounts System (SCNM, for its acronym in Spanish), INEGI. BANCO MÉXICO s.a./Seasonally adjusted figures. 1/Includes both wholesale and retail trade. 2/Excluding professional, corporate and business support services (SPCAN, for its acronym in Spanish). Source: Mexico's National Accounts System (SCNM, for its acronym in Spanish), INEGI. Quarterly Report April - June 2022 9 Transportation and IGAE Services information 100 70 06 IGAE Services excluding SPCAN 2/ 70 90 50 Professional and business 80 support services 2016 2017 2018 Accommodation and food services 2019 2020 2021 June 10 2022 30 90 00 110#112015 2016 Index Jan 2020=100, s. a. During the April-May period, private consumption continued showing dynamism. Gross fixed investment grew moderately in relation to the previous quarter, with a differentiated behavior among its components. Total Private Consumption and its Components Investment and its Components Total Domestic goods Imported goods 2019 90 Domestic services 80 88 s.a./Seasonally adjusted figures. Source: Mexico's National Accounts System (SCNM, for its acronym in Spanish), INEGI. BANCO MÉXICO 2020 2021 May 2022 60 60 0 110 100 Index Jan-2020=100, s. a. 130 140 Imported machinery and equipment 120 Construction 70 Domestic machinery and equipment Quarterly Report April - June 2022 2019 2020 s.a./Seasonally adjusted figures. Source: Mexico's National Accounts System (SCNM, for its acronym in Spanish), INEGI. 2021 120 Total May 40 40 2022 10 10 60 80 100#122013 BANCO MÉXICO 2014 2015 In Q2-2022, the value of manufacturing exports continued increasing and the current account registered a minor deficit. Automotive and Non-automotive Manufacturing Exports 1/ Index Jan-2020=100, s. a. 140 Current Account % of GDP 2/ 2016 20 120 Non-automotive Total Current account 100 Automotive 2017 2018 2019 2020 s. a./Seasonally adjusted figures. 1/Based in current US dollars. Source: Prepared by Banco de México with data from PMI Comercio Internacional, S.A. de C.V., SAT, SE, Banco de México, INEGI. Commercial Balance of Goods of Mexico. SNIEG. Information of National Interest. 2021 2022 July 0 40 60 60 80 20 20 -1.5 Quarterly Report April - June 2022 TE -2.5 -1.7 -1.9 -2.0 2.2 -2.6 Annual data 2/ For figures as a proportion of GDP, the GDP corresponding to each quarter is used. Source: Banco de México and INEGI. 2.5 -0.3 0.4 Q2-2022 11 -3 3 S#13In Q2-2022 and in early Q3-2022, different labor market indicators improved compared to Q1-2022. National Labor Participation Rate 1/ and Employment Rate of Working-age Population 2/ %, s. a. приврити 63 July 61 59 59 мне есть 57 49 55 National and Urban Unemployment Rates %, s. a. Urban unemployment rate National labor participation rate Employment rate of working- age population 53 53 51 49 49 2009 2010 2011 2012 2013- 2014 2015 2016- 2017 2018 2019 2020 2021 2022 s. a. Seasonally adjusted figures. 1/ Percentage of Economically Active Population (PEA, for its acronym in Spanish) with respect to the population of 15 years and older. 2/ Percentage of population of 15 years and older. Source: Prepared by Banco de México with data from INEGI (ENOE, ETOE and ENOEN). BANCO MÉXICO 47 National unemployment rate 45 45 43 33 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Quarterly Report April - June 2022 s. a./Seasonally adjusted figures. Source: Prepared by Banco de México with data from INEGI (ENOE, ETOE and ENOEN). 8.0 July 7.5 7.0 6.5 6.0 5.5 5.0 4.5 4.11 4.0 3.5 3.21 3.0 2.5 12#14BANCO MÉXICO The estimated negative output gap was smaller than in Q1-2022, in line with the positive evolution of economic activity during this period. Gross Domestic Product % of potential output, s. a. Output Gap Estimate 1/ Gross Domestic Product Excluding Professional, Corporate and Support Services 4/ % of potential output, s. a. IGAE 2/ M 95% confidence interval ³/ 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 12 Q2-2022 June 8 -8 -4 IGAE 2/ 4 A 12 Q2-2022 June 8 -12 PIB 2/ -12 PIB 2/ -16 -16 95% confidence interval ³/ -20 2021 2022 -24 2008 s. a./Seasonally adjusted data. 1/Output gap estimated with a tail-corrected Hodrick-Prescott filter; see "Inflation Report April - June 2009", Banco de México, p. 74. 2/ GDP figures as of Q2-2022 and IGAE figures as of June 2022. 3/ Output gap confidence interval calculated with a method of unobserved components. 4/ Excludes professional, scientific and technical services; corporate and business management; and business support and waste management. Source: Prepared by Banco de México with data from INEGI and Banco de México. Quarterly Report April - June 2022 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 13 -20 -24 -8 -4 4#15Outline 1 External conditions 2 Current situation of the Mexican economy 3 Inflation 4 Monetary policy 5 Forecasts and final remarks BANCO MÉXICO Quarterly Report April - June 2022 14#1620131 2014 Source: INEGI. BANCO MÉXICO AA Annual % change During Q2-2022, annual headline inflation continued increasing, reaching levels unseen in over two decades, reflecting the accumulated impact of the pandemic-related shocks and the military conflict between Russia and Ukraine. 10.59 Consumer Price Index Annual % change and incidences in percentage points 15 F1-Ausgust Non-core 9 F1-Ausgust 8.62 8 Headline 12 M 9 8.62 7.97 Core Headline 6 Rest 2015 2016 2017 Variability interval W 2018 2019 2020 2021 2022 3 0 3 2017 Quarterly Report April - June 2022 1/It includes food from the core and non-core components, as well as beverages and tobacco. Source: INEGI. Food 1/ 6 4.28 5 15 0 1 3 4.34 2 7#172017 Source: INEGI. BANCO MÉXICO Other merchandise 2018 2019 2020- Core inflation has trended upwards since December 2020, while non-core inflation remains at high levels. Price Sub-indices Annual % change Core Non-core 14 F1-August 30 F1-August 13 12 11 Foods, beverages and tobacco 10 Non-core 20 20 Agricultural and livestock products 9 10 Core 7 6 5 4 3 Services 2 1 2021 2022 2017 Source: INEGI. Quarterly Report April - June 2022 2018 ROB Energy and government- authorized prices 2019 2020 2021 2022 16 -20 -10 0#18In this complex environment, inflation has continued facing unexpected shocks, attaining levels above those previously estimated. In this juncture, following the previous Quarterly Report, the inflation forecast was revised upwards in the Monetary Policy Statements of June 23 and August 11. Headline Inflation Forecasts Core Inflation Forecasts Observed inflation QR January-March 2022 Annual % change Monetary policy decision August 2022 Monetary policy decision June 2022 Observed inflation 8 9 5 4 3 Annual % change 6 Monetary policy decision August 2022 8 QR January-March 2022 QR October-December 2021 Monetary policy decision June 2022 7 6 50 4 3 2021 2 2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2022 2023 2024 2022 2023 2024 QR October-December Note: Observed inflation refers to the average of the quarter. Source: Banco de México and INEGI. BANCO MÉXICO Note: Observed inflation refers to the average of the quarter. Source: Banco de México and INEGI. Quarterly Report April-June 2022 17#19Outline 1 External conditions 2 Current situation of the Mexican economy 3 Inflation 4 Monetary policy 5 Forecasts and final remarks BANCO MÉXICO Quarterly Report April - June 2022 18#20In view of the intensification of inflationary pressures and the greater challenge to control inflation, the Governing Board raised the target for the Overnight Interbank Interest Rate by 75bp in its June and August meetings, up to a level of 8.50%. Target for the Overnight Interbank Interest Rate, Headline and Core Inflation 1/ Annual % Short-term Ex-Ante Real Rate and Estimated Range for the Short-term Neutral Real Rate in the Long Term 2/ Annual % Target for the overnight interbank interest rate (policy rate) Headline inflation Core inflation 10 F1 August Interest August 9 Short-term neutral real rate range in the long term 6 August % rate 5 8 7 6 G 3 2 Headline inflation target 2007 2008 2009 2010 2011 2012 2014 2015 2016 2017 2018 2019 2020 2021 2022 5 0 Short-term ex-ante real rate 3 -1 N 1/ The data shown up to January 20, 2008 corresponds to the Overnight Interbank Interest Rate (policy rate). Source: Banco de México with INEGI data. BANCO-MÉXICO -2 2/ The short-term ex ante real rate is constructed using the target for the overnight Interbank interest rate and the mean of 12-month inflation expectations from Banco de México's Survey published on August 1, 2022. The dotted line corresponds to the midpoint of the range for the short-term neutral real rate in the long term, which is now between 1.8 and 3.4%. Source: Banco de México. Quarterly Report April-June 2022 In its monetary policy decision of August, the Governing Board restated that it will assess the magnitude of the upward adjustments in the reference rate in its next policy decisions based the prevailing conditions, thus reinforcing Banco de México's commitment to its constitutional on mandate. 19 19#21Headline ― Core Headline and core inflation expectations for the end of 2022 and 2023 increased between March and July 2022. Medium- and long-term expectations were revised upwards to a lesser degree. Median of Headline and Core Inflation at the End of 2022 and 2023 % Median of Medium- and Long-term Inflation Expectations % 8.5 Headline 8.0 Core 7.5 7.0 Inflation 6.5 expectations 2022 6.0 5.5 5.0 Inflation expectations 2023 4.5 4.0 3.5 July 3.0 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 - Mar-22 May-22 Source: Banco de México's Survey of Private Sector Forecasters. BANCO MÉXICO Jul-22 Quarterly Report April-June 2022 2016 2017 2018 Variability interval (upper bound) 4.0 Next 4 years 3.5 2019 Source: Banco de México's Survey of Private Sector Forecasters. 2020 Next 5-8 years Inflation target 2021 2022 20 20 July 2.5 3.0 4.5 5.0#22From the end of March to date, the Mexican peso experienced some episodes of volatility, although it generally performed in a resilient and orderly manner. Interest rates registered generalized increases. Nominal Exchange Rate 1/ Pesos per US dollar Target for the Overnight Interbank Interest Rate and Government Bond Yields Jan-20 Mar-20 May-20 Jul-20 Sep-20 Analysts' exp. 2022 Banxico survey 20.82 Analysts' exp. 2022 Citibanamex survey 20.90 Analysts' exp. 2023 Banxico survey 26 21.48 Analysts' exp. 2023 Citibanamex survey 21.50 Nov-20 Jan-21 Mar-21 24 24 Observed exchange rate 23 May-21 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 August 18 Sep-22 22 21 21 25 27 6 months 10 years 20.15 20 19 2 years 1 year 3 months 1/ Observed exchange rate refers to the daily FIX exchange rate. Figures next to analysts' expectations correspond to the medians of Banco de México's survey for July, published on August 1, 2022 and the Citibanamex survey of August 22, 2022. Source: Banco de México and Citibanamex. BANCO MÉXICO Source: Proveedor Integral de Precios (PIP). Quarterly Report April-June 2022 Jan-20 Mar-20 May-20 Jul-20 Sep-20 · ΟΖ-ΛΟΝ Jan-21 Mar-21 May-21 Jul-21 Sep-21 · ΙΖ-ΛΟΝ % 30 years 8 Jan-22 Mar-22 5 1 day 4 August May-22 Jul-22 21 21 Sep-22 3 6 7 10#23Outline 1 External conditions 2 Current situation of the Mexican economy 3 Inflation 4 Monetary policy 5 Forecasts and final remarks BANCO-MÉXICO Quarterly Report April-June 2022 22 22#24Economic Activity Outlook Current GDP Growth % Report 2022 2023 Lower Limit 1.7 0.8 Central Scenario 2.2 1.6 Upper Limit 2.7 2.4 Lower Limit 1.6 1.4 Central Scenario 2.2 2.4 Upper Limit 2.8 3.4 Increase in Number of IMSS-insured Jobs Thousands Despite the lower dynamism expected for S2-2022, the expectation for 2022 as a whole remains unchanged relative to the previous Report, as a result of a greater-than-anticipated growth of the economy in Q2-2022. The revised forecast for 2023 reflects a more adverse growth scenario that the Mexican economy is expected to face. Previous BANCO MÉXICO Report Current Previous 2022 640 a 800 2023 420 a 620 560 a 760 490 a 690 Current Account % of GDP Report Current Previous 2022 2023 -1.3 a -0.6 -0.8 a 0.0 -0.5 a 0.2 -0.5 a 0.3 Quarterly Report April - June 2022 23#25BANCO MÉXICO Risks to Growth The balance of risks remains significantly biased to the downside ON THE DOWNSIDE A lower external demand, particularly from the U.S., to the detriment of economic activity in Mexico. That the impact on trade or the bottlenecks continue or intensify, leading to input shortages and higher production costs. Tighter financial conditions and episodes of volatility in international financial markets. A lower-than-expected recovery of investment spending. That the COVID-19 pandemic continues affecting supply and demand conditions in the global economy. That extreme weather phenomena affect economic activity adversely. ON THE UPSIDE That the downward trajectory in the number of COVID-19 infections and the adaptation of the economy to conditions imposed by the pandemic lead to a more vigorous recovery. That, within the USMCA framework, Mexico becomes an attractive destination for investment. That global financial conditions are more conducive to economic growth. Quarterly Report April - June 2022 24#26Inflation Outlook Forecasts for Annual Headline and Core Inflation 1/ % Headline Inflation The inflation trajectory presented in the Monetary Policy Statement of August is maintained. Following the increase in Q3-2022, both headline and core inflation are expected to decrease throughout the forecast horizon, and to attain levels close to 3% in Q1-2024. Core Inflation Observed Forecast BANCO MÉXICO 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 Headline Core 7.3 7.8 8.5 8.1 7.1 5.0 3.7 3.2 3.1 3.1 6.5 7.3 7.9 7.6 6.5 5.1 3.8 3.2 3.1 3.0 1.0 0.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 2022 2023 2024 1/Quarterly average of annual inflation. Forecast since August 2022. It also corresponds to the forecast published in the Monetary Policy Statement of August 11, 2022. Source: Banco de México and INEGI. Quarterly Report April - June 2022 25 25#27Risks to Inflation Outlook within the Forecast Horizon The balance of risks remains significantly biased to the upside ON THE UPSIDE Persistence of core inflation at high levels. External inflationary pressures associated with the evolution of the pandemic. ↑ Greater inflationary pressures derived from the geopolitical conflict, particularly on food and energy products. Episodes of exchange rate depreciation. Cost-related pressures associated with hiring conditions and wages. ON THE DOWNSIDE A greater-than-anticipated deceleration in global economic activity. A reduction in the intensity of the military conflict between Russia and Ukraine. That production and distribution chains resume efficient operations. That, given the slack conditions, neither cost-related pressures or labor contracting conditions exert pressure on prices. That the measures implemented by the Policy Program to Fight Inflation and High Prices (PACIC) have a greater-than-anticipated effect. BANCO-MÉXICO Quarterly Report April - June 2022 26#28Final Remarks ■ The uncertainty surrounding the evolution of the pandemic, the consequences of the military conflict in Eastern Europe, the current economic environment in the United States, and the high inflation levels worldwide have contributed to deteriorate the global economic growth outlook. ■ In the face of this challenge, and to support the resilience of the Mexican economy, it is essential to maintain solid macroeconomic fundamentals, including a sound and resilient financial system, as well as a monetary policy focused on attaining price stability. In this regard, Banco de México's Governing Board sets its monetary policy with the aim of promoting an orderly adjustment of relative prices, of the financial markets and of the economy overall, leading to the convergence of inflation to its 3% target. BANCO MÉXICO Quarterly Report April - June 2022 27#291 Annex - Boxes Recent Evolution of Capital Flows to Mexico and Other Emerging Economies 2 Droughts in Mexico and their Potential Impact on Economic Activity 3 Recent Evolution of Nominal Wages of IMSS-insured Workers 4 Trade Credit during the Pandemic 5 The Differentiated Increase in the Cost of the Consumption Basket of Mexican Households 6 Pass-through of Mexico's Reference Rate on Interest Rates at Different Maturities 7 BANCO-MÉXICO Recent Revisions to the Credit Rating and Outlook of Mexico and Pemex Quarterly Report April-June 2022 28#30Annex - Release Dates of Monetary Policy Statements, Minutes of the Governing Board regarding Monetary Policy Decisions, Quarterly Reports and Financial Stability Reports Monetary Policy Statements Minutes of the Governing Board Meetings regarding Monetary Policy Decisions Quarterly 3/ Financial Stability 2/ Reports Reports January 4/ 5 February 9 23 March 30 1 April 13 May 18 31 June 22 1 14 July 6 August 10 24 30 September 28 October 12 November December 9 5/ 14 23 29 6 1/The calendar considers eight dates for monetary policy statements' announcement in 2023. However, just as in previous years, Banco de México reserves the right to modify the monetary policy stance on dates different from the preestablished ones, should there be extraordinary events that call for the central bank's intervention. The monetary policy statements will continue to be released on Thursdays at 13:00, just as in 2022. 2/ The corresponding Minutes of the Governing Board monetary policy meetings will be published on Thursdays, two weeks after each monetary policy statement is released. 3/ The Quarterly Report to be published on March 1 corresponds to the fourth quarter of 2022; the one released on May 31, to the first quarter of 2023; the one published on August 30, to the second quarter of 2023; and that of November 29, to the third quarter of 2023. 4/ The corresponding Minutes of the Governing Board Meeting of December 2022 will be published on January 5, 2023. 5/ The Minutes of the Governing Board Meeting of December 2023 will be published on Thursday, January 4, 2024. BANCO-MÉXICO Quarterly Report April-June 2022 29 29#31B BANCO DE MÉXICO® www.banxico.org.mx