The BCRA raised the monetary policy rate a few days ago and that took Argentina to first place in the world in this matter, even above countries that have more inflation.
On October 12, the Central Bank (BCRA) raised the reference interest rate to 133% given the inflation data for September, which was 12.7%, in order to drive the flow of money from the dollar to the peso and as a way to contain the rise in prices. But, with the last adjustment, Our country reached a new record: it became the one with the highest rate in the world.
After the announcement of the last increase, our country exceeded the rate of Zimbabwe which is the highest inflation nation on Earth and stood at 340% year-on-year in September, while Its monetary policy rate was 150% until a few days ago, but it lowered it to 130% to boost economic growth. This decision by Zimbabwe responded to annual inflation slowing to 18.4% in September from 77% the previous month.
This left Argentina in first place in the world in terms of rates, with 133%, in a context in which inflation continues to be very high and went from 6.3% in July to 12.4% in August and to 12.7% in September.
Rates: which countries have the highest and which the lowest
Behind Argentina and Zimbabwe, the country with the highest rate is Venezuela (where it is 55%)followed by Ghana (30%).
While, Japan has the highest rate and is negative at 0.10% there, followed by Fiji (0.25%) and Switzerland (1.75%).
Fixed term: the decision made by the BCRA
The rate adjustment implemented by the BCRA this month was a increase of 15 percentage points (1,500 basis points)with which the BCRA seeks to encourage savers to leave their pesos in fixed terms and relieve pressure on the dollar, in a week in which the blue exceeded $1,000 (although it later fell to $980) prior to the presidential elections on October 22.
With this measure, the fixed term traditional began to have an effective monthly yield (the TEM) of 11%, closer to the September inflation figure than the previous 9.7% it offered until that moment.
Let us remember that, in August of this year, after the post-STEP devaluation of 22% that the Government implemented, The Central Bank applied a new rate increase of 21 percentage points and set the yield of the traditional fixed term and the Leliq at 118% (for those that are 28 days).
Source: Ambito
