Further Colour On BCRA Headlines

As per Bloomberg article:

• Argentina's central bank is ruling out increasing interest rates for the foreseeable future even as currency pressures mount and annual inflation climbs above 50%.
• Argentina's central bank has held its benchmark rate at or around 38% since March 2020. After a slowdown during the second part of last year, annual inflation accelerated back to 50.2% in June.
• The country's monetary authority is prepared to keep holding its key rate for months to come, according to people with direct knowledge of the matter. The central bank, know as BCRA, is betting that inflation will slow in the remainder of the year and is optimistic that international reserves will continue to grow, said the people, declining to be named discussing internal policy.
• Current policies in its toolkit had included using subsidies, company fines and price controls on a range of items to try to stop price gains.
• It has more recently tried to slow down the devaluation of the official spot peso to reduce the pass-through on domestic prices. Yet that strategy has heated up the peso in parallel markets, approaching levels last seen in October.