Smart Finance

Term

Banxico

Banco de México, the country's central bank. Its main job is keeping inflation low and stable; it sets the reference interest rate in pesos.

In pesos: When Banxico raises its rate, credit cards and car loans get pricier and CETES pay more.

Where to go deeper

3/4 5 min Read What inflation is, and how it hits you Why the same money buys less over time, how a raise can still be a pay cut, and what central banks are actually doing when they raise rates.

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Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.