The Central Bank of the Argentine Republic (BCRA) decided this Thursday to use for the design of the monetary and financial policy a new interest rate corridor made up of the interest rate of the short-term Treasury Billsor, the monetary policy rate represented by the 28-day Leliq and the 1-day repo rate.
The BCRA indicated that “this decision is part of a strategy that simultaneously attends to arrive at a scheme of positive interest rates in real terms for the economy, strengthen the public debt market in pesos so that it achieves depth and liquidity and gradually advance in the use of Treasury instruments as monetary policy instruments”.
Finally, the governing monetary entity pointed out that “this new configuration will increase the power in the use of the interest rate as an instrument of economic policy, seeking that companies and individuals obtain interest rates in the financial market and titles that remunerate them adequately. “.
Currently, the 1-day repo rate stands at 40.50%, the 28-day Leliq rate at 52%, and the October Treasury Bill (LEDes) rate (S31O2) – based on this Wednesday’s tender – 63.46%.