The central bank of Argentina on Thursday it cut its benchmark interest rate to 50%, the third cut in three weeks, as inflation expectations fall rapidly.
Since April 11, the monetary authority has reduced the base rate by 10 percentage points in each decision.
The base rate cut comes amid growing optimism from the central bank at the prospect of monthly inflation falling more quickly than analysts expected, which is key to the country’s economic recovery, with prices rising by almost 300 % per year.
The monetary authority’s board took the decision this Thursday, taking into account the “rapid adjustment” of inflation expectations and the strengthening of the fiscal anchor, among other aspects, the central bank said in a statement.
Liberal President Javier Milei took office in December promising to implement strict spending cuts to bring inflation back under control.
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