Argentina’s Central Bank increases interest rate by 1,000 basis points to 91%
The Board of Directors of the Central Bank of Argentina (BCRA) decided yesterday to increase the reference interest rate by 1,000 basis points from 81 percent to 91 percent, according to a statement issued by the entity.
The monetary authority indicated that the decision “is based on the objective of propitiating positive real returns on investments in local currency and of acting to preserve monetary and financial stability”.
This is the second increase in the monetary policy rate so far in April in Argentina, in a context of high inflation and a recent rise in the dollar price in the parallel market.
The latest official indicator of price variation was 7.7 percent in March and accumulated 21.7 percent in the first quarter.
In year-on-year terms, inflation in Argentina was 104.3 percent in the third month of 2023.
The BCRA indicated that it “will continue to monitor the evolution of the general price level, the dynamics of the financial and foreign exchange markets, and the monetary aggregates to calibrate its rate policy”.
In addition, the state entity resolved to increase the minimum limit for fixed-term deposits (savings instruments in local currency) to 91 percent per annum for individuals. In contrast, the minimum guaranteed rate for the private sector was 85.5 percent.
More: Argentina news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief