The Central Bank of Argentina announced this Thursday (2) that it has decided to reduce its reference interest rate again, from 60% to 50% per year, equivalent to 4.2% monthly, the monetary authority reported. This was the second cut in a week and the fifth reduction since Javier Milei assumed the country’s presidency in December.
The BC justified the measure by saying that the government is increasingly confident in containing inflation.
Download a list of 10 Small Caps stocks that, in experts’ opinion, have appreciation potential in the coming months and years, and watch a free class
Continues after advertising
According to a statement, the BCRA’s decision takes into account “the financial and liquidity context and is based on the rapid adjustment of inflation expectations, the strengthening of the fiscal anchor and the contractionary monetary impact derived from seasonality in the Treasury’s external payments in the current quarter” .
Reuters highlighted that, since April 11, the monetary authority has reduced the base rate by 10 percentage points in each decision.
The expectation of the Argentine authorities is that the Consumer Price Index should have been around 8% in April, after the 11% observed in March.
Continues after advertising
(With Reuters)
