Currently, the yield of liquidity bills (Leliq) is located in the 75% annual nominalequivalent to a 107% annual effective, when the projections of retail prices are slightly below 100% by 2022.
The BCRA comes from three months of not changing your rateafter successive increases from the distant nominal annual 38% of last December.
The monetary entity was forced to raise yields sharply in an attempt to control inflation, as the main central banks in the world do, and thus seek to stabilize the exchange market given the persistent devaluation of the battered peso.
“The ‘Leliq’ and the Central Bank passes already exceed 10 trillion pesos (more than 56,500 million dollars), more than 120% year-on-year and well above inflation. They filter that December will give 4.5% inflation and the Treasury lowered the rate (in its recent tender),” commented a financial market analyst.
The consultancy Delphos Investment also reported the possibility of a drop in the BCRA rate, although in no case were parameters given for an eventual new level.
Retail prices (CPI) slowed down to 4.9% in November compared to 6.3% in October and 6.2% in Septemberalong with a cut in purchasing power.
A positive real rate is one of the points agreed between Argentina and the International Monetary Fund (IMF) in the recent ‘Extended Facilities’ agreement.
Source: Ambito
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