In that sense, The Board of Directors of the BCRA decided to raise the monetary policy reference rate by 250 basis points and create the 180-day Liquidity Note (Notaliq) in order to offer a medium-term instrument to absorb liquidity.
The 28-day Leliq will have a nominal annual yield of 42.5% (TNA), equivalent to a TEA of 51.9%
The Leliq at 180 days passes a nominal annual yield of 47% (TNA), equivalent to a TEA of 52.6%
While. the Notaliq will have a variable rate, equivalent to the effective annual yield of the Leliq at 28 days.
Fixed term rate
In line with the rise in the monetary policy interest rate, in order to promote its full transmission to the return of time deposits in pesos, the Board of Directors of the BCRA raised the minimum limits of interest rates on fixed terms.
for human persons, the new floor is set at 41.5% per year for 30-day deposits, which represents a yield of 50.4% of the effective annual rate (TEA).
For the rest of the depositors of the financial system the guaranteed minimum rate is set at 39.5%, which represents an Annual Effective Rate of 47.5%.
Rest of rates
The rest of the rates regulated by the BCRA will not have changes, in such a way that the rate for financing unpaid credit card balances remains at 49%. Rates are also maintained lines of productive investment with a rate of 30% and for working capital with a rate of 41%.
Argentina’s principle agreement with the International Monetary Fund announced by Minister Martín Guzmán at the end of January included the definition of move gradually towards a scheme of positive real interest rates. That is to say, that they are located above the expected price rise, as part of a broader bet to try to reduce the pressures on the dollar and the cost of living.
Last Thursday, in the first tender in January, the Ministry of Economy took a step in that direction and validated the increase of between 2 and 3 percentage points in yields that the market requested in the expectation that the Central Bank will move its rates this week.
Finally, the entity chaired by Miguel Pesce advanced in the same direction, as Ámbito advanced last Monday.
Source: Ambito
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