Free Trial

BCRA Stands Pat, Sets Range for Key Interest Rate

ARGENTINA
  • Argentina’s central bank held its benchmark interest rate at 52%, even as inflation accelerated to its fastest pace in 30 years, and set a reference range for monetary policy.
  • In a separate statement, the central bank said it was setting a reference range for monetary policy, having rates for one-day repos as the floor, Treasury notes as the ceiling, and keeping the 28-day Leliq as the benchmark. Currently, the rate for one-day repos is 40.5% while Treasury notes stand at 63.5%.
  • The range will serve as a “guide” for the central bank to determine the benchmark rate and to show it remains above inflation, as requested by the International Monetary Fund, a bank spokesman said.
  • The measures are also intended to provide liquidity to the debt market in pesos and gradually advance in the use of Treasury instruments as monetary policy instruments, according to the statement. (Bloomberg)

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.