The Central Bank of Argentina (BCRA) raised to 60% the reference interest rate it pays for the Leliq, based on the acceleration of inflation and with the aim of keeping the yields of financial placements in line. This represents an increase of 800 basis points compared to the previous 52% and is the highest in three years and represents an Annual Effective Rate of 79.8%.
At the same time, the BCRA raised the minimum limits of interest rates on the fixed terms of human persons, establishing the new floor at 61% per year for 30-day deposits up to 10 million pesos, which represents a yield of 81 .3% in effective annual terms.
For the rest of the fixed-term deposits of the private sector, the minimum guaranteed rate is established at 54%, which represents a TEA of 69.6%.
Likewise, the monetary authority raised the rate for one-day repo operations -Rueda Repo- to 55%, while for the active yield at the same term it was set at 75%.
The BCRA speeds up the rate normalization process #Monetary politics and reinforces its financial coordination with the Treasury.
Raised the annual nominal interest rate of the Liquidity Letters #Leliq 28 days at 60% (Annual Effective Rate of 79.8%): https://t.co/wqsoTK2I6c
— BCRA (@BancoCentral_AR) July 28, 2022