Inflation to Close 2023 at 5%; Export Increase
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Inflation to Close 2023 at 5%; Export Increase

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Emilio Aristegui By Emilio Aristegui | Junior Journalist and Industry Analyst - Thu, 03/02/2023 - 13:00

The Bank of Mexico (Banxico) continues working to address the severe inflationary shocks that continue to affect the Mexican economy by steadily raising interest rates. But Jonathan Heath, Deputy Governor, Banxico, argues that these pressures could be dismantled by the end of 2023. 

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Jonathan Heath Forecasts Future Banxico Monetary Policies

Heath explained that the central bank’s interest rates will not exceed 12% and forecasted inflation to end below 5% by the end of 2023.  Mexico’s interest rate is expected to end 2023 between 11.25% and 11.75%, as Mexico's “low financial penetration” forces Banxico to implement more forceful monetary policies in comparison to other countries, says Heath.

Mexican Exports Grew Year-to-Year: INEGI

The National Institute of Statistics and Geography (INEGI) reported via its Timely Information about Mexico's Trade Balance of Merchandise report that the country’s trade deficit decreased by US$2.1 billion from January 2022 to January 2023. INEGI highlighted that exports grew by 25.6% annually and that In January 2023, the country registered a trade deficit of US$4.1 billion. 

KLAR Receives Fintech License

Klar Pago, Klar's fintech division, obtained its fintech approval license from Mexican authorities, which allows the company to expand its operations in the country. The license will allow Klar to offer its customers a wide range of financial services. In Mexico, only 35 fintech fintechs Mexico are regulated.

“We are delighted to have received our fintech approval license, a significant milestone for our company. This license will allow us to continue cultivating the Klar Pago ecosystem and thus increase participation in the financial lives of our customers,” says Stefan Möller, CEO, Klar.

Pulpi Works with the Power of Payroll

Carlos Ramírez, CEO and Founder, Pulpi, explains that new possibilities in the industry lie in tying common expenses to payroll using new financial tools. After analyzing economic trends, Pulpi concluded that if users have an assured income from earned wages without restriction from pay periods, collaborative consumption can be enacted. 

“Payroll has limitless power, and we anticipate a successful future. If we can take advantage of the deduction priority and link it to every spending, saving and credit, we'll then not only help the employee, but consumers and businesses as well,” says Ramírez. 

The Rise of ChatGPT and AI

GPT, Generative Pre-training Transformer, aims to provide natural language processing indistinguishable from human interaction. The use of this and more powerful AIs would push expectations for instantaneous customer service solutions around the clock and prevent financial crime. 

“Cheaper and cheaper computing power is ushering in a democratization of sophisticated AI tools. These are transforming banking to make them more secure, more efficient and… more loveable,” says Juan Miguel Guerra, CEO, Revolut. 

Photo by:   Image by piro4d from Pixabay

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