The Board of Directors of the Central Bank of the Argentine Republic (BCRA) raised the 28-day Liquidity Letters (Leliq) annual nominal interest rate by 300 basis points, going from 49% to 52%.
The BCRA will maintain the mechanisms by which it guarantees that the increase in the monetary policy rate is transferred in full to depositors, both individuals and companies, through fixed terms with a minimum rate and UVA fixed terms.
That is why the Board of Directors of the BCRA raised the minimum limits of interest rates on the fixed terms of human persons, establishing the new floor at 53% per year for 30-day deposits up to 10 million pesos. For the rest of the fixed-term deposits of the private sector, the guaranteed minimum annual rate is established at 50%.
From the Central Bank they understand that “the data for May confirmed the deceleration in inflation that had begun in April, with a significant drop in the core category”, and they express that they expect the monthly inflation records to continue to decline gradually. On the other hand, they point out that “an increase in the perception of international financial risk has recently been observed.”
The monetary authority expresses in the official statement that “it continues its process of gradual normalization of the policy rate and the rest of the interest rate structure of the economy, in order to contribute to preserving financial and exchange stability, sustaining growth of the product and employment and reduce inflation”.
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