Official sources ruled out that the first definitions are known today, as had been initially proposed. The key guidelines.
The first words of Javier Milei as acting president, their central focus was the economy and criticism of the “inheritance received” as support to justify the quintessential guideline of the plan to be applied: the fiscal adjustment shock. After that message, which did not delve into details of the policies to be implemented, the expectation is placed on the announcements of the first measures by the new Minister of Economy, Luis Caputo. But everything indicates that we will have to wait. Official sources confirmed to Ambit that they will not be done today, as had been suggested by Milei’s press team in the early hours of Sunday.
Thus, the details of the “Caputo plan” will arrive in the following days, despite the prevailing uncertainty among the main economic and market agents. That is why the focus of attention will now be on seeing what is happening today in the exchange marketboth official and parallel.
The proposed scheme was that today at 8 o’clock the presidential spokesperson, Manuel Adorni, give a press conference and the first Cabinet meeting will be held at 9 at Casa Rosada. The project would be on the table “omnibus law” that the Government plans to send to Congress in the coming days.
Javier Milei: the economic measures that are expected
Although the details, which were still being discussed over the weekend, remain to be announced, the initial economic measures will be presented with four central axes: a strict fiscal adjustment to move quickly towards zero deficit (see separate), a devaluation jump of the official exchange rate (which some versions anticipate with a floor of 50%), a release of key prices (such as rates, fuel and those subject to Fair Prices) and the eelimination of the remunerated liabilities of the Central Bank.
“Surely the devaluation will be announced these days and it doesn’t make much sense to do it all on the same day. But this week we are going to see an increase in the official exchange rate. We have to be attentive to how the market reads each of the measures that are being taken and this trust that they have to generate,” said economist Elena Alonso in dialogue with Ambit.
The thick lines were drawn by Milei on the steps of Congress, who assured that “there is no alternative to adjustment and shock,” after stating that he receives ““the worst inheritance in history”. The warning to justify it was the projection of inflation that would travel between 20% and 40% for the coming months. Paradoxically, the president said that the adjustment will fall on “the State and not on the private sector”, but a few paragraphs later he admitted that “it will have a negative impact on the level of activity, employment, real wages, the number of poor and indigent.”
Source: Ambito
