In this context, it was also revealed that inflation accelerated in July to 7.4% compared to June, the highest level since 2002 when it reached 10.4%. In fact in the last 12 months accumulated an increase of 71%, the highest in three decadesreported this day the Indec.
The Economist Nery Persichini in dialogue with Ámbito argued that “despite the rise in nominal rates, the real rate (what remains after discounting inflation) remains in negative territory“.
To analyze which of the two options is convenient, he made the following calculation: “With a horizon 3 monthsconsidering the inflation of July and what the market expects for August and September, a UVA fixed term could yield a direct 20.4%while a traditional fixed term would pay 2 percentage points less”.
To its turn, financial analyst Christian Butelercoincided with the diagnosis. “Bearing in mind that inflation was 7.4%, and if I pay the rate monthly it gives you 5.7%, the fixed term UVA is still convenient for me” He said and added: “The UVA fixed term is three months ahead, the first month you have 7.4% inflation and you have to analyze what the figure will be in the coming months.”
In this regard, Buteler considered that the drag of the CPI measurement for July will give a monthly 6% in Augustwhich confirms that the UVA fixed-term option continues to be preferable.
Fixed term UVA vs traditional fixed term
The fixed installments UVA are hired by a minimum of 90 days and they allow obtaining a return above inflation, according to the rate offered by the entities. There is the option of precancel them before 90 days, after 30 days, but a lower rate is received than that of a traditional fixed term.
In the case of the traditional fixed term, it is contracted for a minimum period of 30 days and has a guaranteed minimum rate, established by the BCRA for retail savers.
Source: Ambito
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