As for the shorter-term instruments, the 7-day passive repos are progressively eliminated, while those arranged for 1 day remain in force.
The 28-day LELIQ rate will continue to be the benchmark indicator regarding the stance of monetary policy, which will be complemented with the BCRA’s participation in the secondary market for public securities in order to align the temporary rate structure and guarantee the liquidity of these instruments.
In line with the rise in the monetary policy interest rate, in order to promote its full transmission to the return of term placements in pesos, the BCRA’s Board of Directors raised the minimum limits of interest rates on fixed terms.
For human persons, the new floor is set at 39% per year for 30-day deposits, while for the rest of the depositors in the financial system, the minimum guaranteed rate is set at 37% per year.
The new level of the monetary policy interest rate is in line with the BCRA’s Objectives and Plans for the year 2022, in which the authorities established the goal of setting the path of the policy interest rate in order to tend towards real returns. positive results on investments in local currency, and on preserving monetary and exchange stability.
Throughout 2022, the factors that put pressure on the general price level are expected to subside. Exchange and interest rate policy, together with prudent liquidity management, will help improve exchange rate expectations.
Source From: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
