Free Trial

Surging Inflation Unlikely To Alter BCRA Benchmark Leliq Rate

ARGENTINA
  • Inflation rose above median surveyed estimates on Wednesday, with the annual rate reaching 124.40% Y/y. Shortly before the release, headlines were released indicating that despite the expected surge in inflation following the 18% currency devaluation on August 14, the central bank are unlikely to hike the key benchmark Leliq rate in response.
  • Bloomberg reported that Argentina’s central bank will likely keep its key interest rate unchanged despite monthly inflation extending to a three-decade high because policymakers are expecting price pressures to ease later in the year, according to two officials with direct knowledge of the matter said. (BBG)
  • For reference, the benchmark Leliq rate currently stands at 118% and policymakers are expected to hold a board meeting on Thursday.

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.