On the contrary, the document states that loans to the private sector at constant prices and without seasonality “they would have registered a monthly contraction, accumulating four consecutive months of falls, with a generalized behavior at the level of the large lines of loans”.
In this way, the orthodox rate hike formula would be giving the usual answers, such as higher deposits, less borrowing for production and consumption, and a decline in inflation.
The latter is so because the report also highlights the new reduction in the monthly inflation rate, from 6.2 percentwhich placed it “at a level similar to the monthly yield of the monetary policy rate”.
The report even highlights the fact that core inflation, that is, unregulated prices, was even lower, ending at 5.5 percentwhich led to central bank to maintain “unchanged their reference interest rates and the guaranteed minimum rate of fixed-term deposits”.
In the meantime, The Central Bank will once again define whether or not it is appropriate to raise rates according to the new inflation data that will be known the following week to prevent them from falling into negative territory and encourage dollarization.
Source: Ambito
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