Investor Presentaiton

О All members have adopted a more cautious stance Bias Member Relevant comments Hawkish Dovish Irene Espinosa Jonathan Heath Omar Mejía Galia Borja Victoria Rodríguez "...the fiscal package could generate pressures on aggregate demand. [...] the consequences for inflationary dynamics could be even greater for that year." "...reiterated that it is convenient to maintain the monetary stance in restrictive territory during the entire forecast horizon." "... it will be necessary to maintain the level of monetary restriction for an even longer period than that foreseen in the previous meeting and, going forward, expanding this policy stance could be required, either actively or passively." "...the disinflationary process faces domestic pressures from a tightening labor market and the dynamism of aggregate demand, in addition to the still uncertain effects of fiscal expansion..." "... the period in which the nominal interest rate remains fixed should last at least for the rest of the year, with the possibility of extending beyond the first quarter of 2024..." "...the monetary policy statement should maintain the categorization of such period as "extended" and even "not yet defined"." "...current uncertainty is more associated with the speed at which inflation will converge to its target..." "... inflation's behavior over the forecast horizon still faces significant challenges..." "...services prices are showing a larger pass-through of accumulated cost-related shocks, due to the greater demand they face..." "...the main challenge continues to be the persistence of core inflation, especially that of services." "...the relevance of having communicated a prolonged pause and of continuing to be cautious with the stance that has been achieved, given the prevalence of the challenges in the inflationary front." "I that communication has contributed to avoid a premature easing of monetary conditions." "...is required to avoid reference rate cuts that are premature or implemented faster than necessary and, consequently, that could jeopardize the downward trajectory of inflation." the more gradual decline in inflation [...] could imply that, looking ahead, the reference rate may need to be lowered more gradually, once the disinflationary process allows for such decreases." "...the reference rate should remain at its current level for an extended period." 78 Source: Banxico Div DB Rev Dep TI LD Loan BAP Guid ESG GRUPO FINANCIERO Eco NIM NI ROE ICAP Mkt App BANORTE Hist C/I

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