The monthly rate of the Central Bank’s Passive Repos is now 4.2%, when it was previously 5%. For its part, the annual effective rate (TEA) is now 64.8%.
The Central Bank (BCRA) lowered the monetary policy rate again this Thursday, in a context of inflationary slowdown. It is the fifth reduction applied by the monetary authority since the inauguration of Javier Milei’s government.
The Board of Directors of the Central decided to lower the annual nominal rate (TNA) of the Passive Repos with a one-day term from 60% to 50%, after having reduced it from 70% to 60% last week. “The decision is taken into consideration of the financial and liquidity context and is based on the rapid adjustment of inflation expectations, the strengthening of the fiscal anchor, and the contractionary monetary impact derived from the seasonality in the Treasury’s external payments for the quarter. ongoing,” they stated from the entity headed by Santiago Bausili.
The measure will negatively impact the nominal return of fixed terms in pesos, waiting to see what the real impact will be due to the drop in inflation. Likewise, their dollar yield will continue to be positive but lower than in recent months.
The monthly rate of the Passes is now 4.2%, when previously it was 5%. In parallel, it is expected that the Consumer Price Index will show an increase of 8%, against the 11% it had given in March, while the exchange rate policy maintains the “crawling peg” close to 2% monthly for the correction of the value of the dollar.
For its part, the annual effective rate (TEA) of the Passes is now 64.8%against an expected annual inflation of 190% for all of 2024 and an exchange rate increase of 124% for the same period, according to the latest Market Expectations Survey (REM) of the BCRA.
Source: Ambito
