Namely, Those who spend more than $200 with a credit card and finance the payment will have to do so at the regulated rate, which today is 80%.. Financial institutions must notify cardholders before applying this measure.
“The financing of summaries up to 200,000 pesos per month will maintain the maximum rate set by the BCRA, of 62%,” the communication concludes.
Interest rates
The Central Bank of Argentina (BCRA) raised to 60% the reference interest rate it pays for the Leliq, based on the acceleration of inflation and with the aim of keeping the yields of financial placements in line.
This represents an increase of 800 basis points compared to the previous 52% and is the highest in three years and represents an Annual Effective Rate of 79.8%.
At the same time, the BCRA raised the minimum limits of interest rates on the fixed terms of human persons, establishing the new floor at 61% per year for 30-day deposits up to 10 million pesos, which represents a yield of 81 .3% in effective annual terms.
For the rest of the fixed-term deposits of the private sector, the minimum guaranteed rate is established at 54%, which represents a TEA of 69.6%.
“The economy faces an increase in price volatility in a context of financial fluctuation uncorrelated with the macroeconomic fundamentals of the country,” argued the BCRA.
He added that “in line with the 2022 Objectives and Plans, the monetary authority considers it necessary to speed up the process of normalizing the policy rate and the rest of the economy’s interest rate structure to bring them to positive ground in real terms, in order to contribute to preserving financial and exchange stability.
The BCRA expects these actions to contribute to a consistent decline in inflation.”
The decision is part of the commitment to offer a positive real interest rate as signed with the IMF. Along these lines, two weeks ago the entity in charge of Miguel Pesce implemented a “rate broker” that seeks to achieve that goal.
Likewise, the monetary authority raised the rate for one-day repo operations -Rueda Repo- to 55%, while for the active yield at the same term it was set at 75%.
In the auction of titles in pesos that the Ministry of Economy carried out, it had to validate annual effective interest rates of around 90%, in order to raise the necessary funds to cover maturities of $ 324,000 million.
The BCRA’s decision was made in the midst of a delicate political moment where changes are being ventured in the Executive Power, and that would also reach the BCRA.
Source: Ambito
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