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MNI INTERVIEW: Argentina To Hold Rates Amid IMF Negotiations

Former BCRA director and board member Enrique Szewach speaks with MNI in an interview.

MNI (BRASILIA) - The Central Bank of Argentina is likely to keep its interest rate on hold at 29% while it is negotiating with the International Monetary Fund (IMF), former BCRA director and board member Enrique Szewach told MNI, adding that any significant additional monetary easing could hit bond markets.

"Now the central bank has to operate differently because if it sharply lowers the monetary policy rate and the public sector’s borrowing rate, it may struggle to roll over public debt. That would mean more money issuance and more problems," Szewach said in an interview.

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MNI (BRASILIA) - The Central Bank of Argentina is likely to keep its interest rate on hold at 29% while it is negotiating with the International Monetary Fund (IMF), former BCRA director and board member Enrique Szewach told MNI, adding that any significant additional monetary easing could hit bond markets.

"Now the central bank has to operate differently because if it sharply lowers the monetary policy rate and the public sector’s borrowing rate, it may struggle to roll over public debt. That would mean more money issuance and more problems," Szewach said in an interview.

Keep reading...Show less