Free Trial

Bank Source Suggests BCRA Will Likely Cut The Benchmark Rate "Soon"

ARGENTINA
  • Central Bank Likely To Cut Benchmark Rate 'Soon' - Bank Source - Reuters News
  • The BCRA is set to cut the benchmark Leliq interest rate from its current level of 80% "soon", a source at the bank told Reuters on Tuesday asking not to be named. However, according to the report the magnitude and exact timing of the cut has yet to be decided.
    • The headlines follow the bank delivering a surprise rate cut in March from a previous level of 100%, citing signs of inflation starting to cool. As a reminder, economy minister Luis Caputo said in an interview with TN on Friday that March CPI will be around 10% m/m, vs. +13.2% m/m in February. Additionally, there appears to be an improved level of macroeconomic stability amid a tough austerity drive by new libertarian President Javier Milei.
    • For reference, central bank directors usually meet weekly on Thursdays to make monetary policy decisions, though these can come at any time.
    • Milei retweeted an article on X on Sunday suggesting a new rate cut was expected. The central bank declined to comment.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.