The inflation data for August was known, which was 12.4%. The Central Bank decided that it will leave the fixed term rate unchanged. How does that instrument look?
Behind the August inflation datawhich was located in the 12.4% marking a record in 32 years, the board of the central bank (BCRA) decided do not change the rate of performance of fixed term traditional. Therefore, it remains to wonder how the performance of the fixed term regarding the inflation.
As explained, the BCRA established that there will be no change in the interest rate and that, therefore, it will remain at the levels reached with the increase that it made on the day after the primary elections. That is to say, at 118% (nominal annual rate, TNA) with a performance of 209% effective in one yearwhich, in monthly terms, is equivalent to a gain of 9.7% (TEM).
From the monetary entity they stated that “interest rate policy of the Central Bank seeks tend towards positive real returns about the investments in local currencywith the purpose of preserve monetary stability and exchange rate.” But they also added that they will continue “monitoring the evolution of the general price levelthe exchange market dynamics and monetary aggregates for the purposes of calibrate your interest rate policy and liquidity management”.
Fixed term: how it fared with respect to inflation
As to If it is advisable to invest in a fixed term to beat inflationit is essential to observe the monthly effective rate (TEM)which is from 9.7%. In this way, it can be deduced that the fixed term monthly performance remained below the price evolution data (12.4%).
At the same time, this Friday, the vice minister of economy, Gabriel Rubinsteinhighlighted that in the last weekfrom September 4 to 10, the price variation slowed and announced that the government will report every Friday the weekly evolution of the Consumer Price Index.
In the statement released by the secretariat led by the vice minister of Economy, titled “weekly inflation in decline“, it was also highlighted that the weekly price variation was “giving way” after the 20% devaluation Of weight post STEP.
Source: Ambito
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