The Board of Directors of the Central Bank of the Argentine Republic (BCRA) decided to keep the monetary policy rate unchanged at 118% (209% in effective annual terms, TEA).
After knowing that monthly inflation stood at 12.4%, The Board of Directors of the Central Bank of the Argentine Republic (BCRA) decided to keep the monetary policy rate unchanged at 118% (209% in effective annual terms, TEA), as Ámbito advanced. It should be remembered that, after the PASO, the monthly interest rate of the traditional fixed term was 8.9% per month.
For the BCRA, the accelerated inflation was “driven by the transfer to prices of the highest financial volatility recorded in the second half of the month and the recalibration of the level of the official exchange rate“.
For the monetary entity, “however, high frequency indicators reflect a slowdown in the pace of increase in the general price level from the peak of the third week of August, which would have deepened so far in September”.
“The interest rate policy of the Central Bank seeks to favor positive real returns on investments in local currency, in order to preserve monetary and exchange stability. The BCRA will continue to monitor the evolution of the general price level, the dynamics of the exchange market and monetary aggregates for the purposes of calibrating its interest rate and liquidity management policy,” they expressed.
Source: Ambito
