The Central Bank (BCRA) set a rise in monetary policy interest rates from 69.5% to 75%. The measure will take effect from this Friday and will have an immediate impact on fixed-term deposits in pesos, as a way to prevent price increases from affecting savers.
This is the third rise in interest rates applied by the BCRA in the last two months, after the Leliq rate rose 800 points on July 28, which went from 52 to 60% per year, and on August 11 it set a rise of 950 points, to reach 69.5% per year.
This represents a yield of 107% in effective annual terms, while the rest of the fixed-term deposits of the private sector (individuals or companies) will have a minimum guaranteed rate of 66.5%, which represents an effective annual rate of 91 %.
The rate hike is part of the new monetary policy strategy set by the BCRA, which seeks to establish a policy interest rate path in order to tend towards positive real returns on investments in local currency and to preserve monetary stability and would change.
“At the same time, the new rates will allow the consolidation of exchange and financial stability and promote the accumulation of international reserves,” explained the Central. In that sense, he explained that future rate adjustments will be closely linked to “the past and prospective evolution of the general level of prices and the dynamics of the foreign exchange market.”
The Board decided to raise the interest rate by 550 basis points. #Monetary politics: the annual nominal interest rate of the Liquidity Letters #Leliq at 28 days it went from 69.5% to 75% ▶️ https://t.co/3eYBJRFsyt
— BCRA (@BancoCentral_AR) September 15, 2022