The Board of Directors of the Central Bank (BCRA) resolved this Thursday to keep the monetary policy rate unchanged, which will remain at 75% TNA and 6.25% monthly, after the INDEC price index marked an increase of 5.1% for the general level in December.
The entity understood when making the decision known that it “will contribute to the gradual deceleration of inflation in the medium term.”
The measure intends to maintain an interest rate in pesos that is real positive, that is, that the return on assets in pesos exceeds inflationin order to make placements in local currency attractive and discourage consumption as a form of “savings” or seeking coverage in the dollar.
In this sense, the Central assured that “the calibration of interest rates in positive territory in real terms guarantees the protection of savings in pesos and contributes to keeping exchange rate expectations anchored, favoring the disinflation process”.
“The monetary authority considers that keep the reference rate unchanged will contribute to the gradual deceleration of inflation in the medium term, consolidating financial and exchange stability,” the BCRA said in a statement.
He clarified that, in any case, he will maintain the commitment to “carefully monitor the evolution of inflation and monetary aggregates”to “avoid excessive financial volatility that could negatively affect price formation and the development of the financial and capital markets.”
To this end, the Central Bank will continue to actively use the monetary policy interest ratethe structure of regulated passive and active rates, as well as all the other available instruments”, affirmed the entity led by Miguel Ángel Pesce.
The last time the BCRA changed the monetary policy rate it was in the middle of septemberwhen it ordered an increase of 750 basis points in the yield of its remunerated liabilities, which went from 69.5% to 75% per annum, a level that defines the remuneration of fixed-term deposits, interest rates for credits and other costs financing in pesos.
“The measure intends to maintain an interest rate in pesos that is real positive, that is, that the return on assets in pesos exceeds inflation, in order to make placements in local currency attractive and discourage both consumption and form of “savings” or search for coverage in the dollar
Total, the BCRA applied three interest rate increases between July and September: a rise of 800 points in the Leliq rate, which went from 52 to 60% per year, on July 28; a rise of 950 points, to reach 69.5% per year, on August 11; and the last rise of 750 points on September 15, to go from 69.5% to 75% annually.
In this way, the minimum limits of the interest rates on the fixed terms of human persons The floor for 30-day deposits up to 10 million pesos will continue at 75% per year, which represents a yield of 107% in effective annual terms; while larger time deposits (whether individuals or companies) have a minimum guaranteed rate of 66.5%, which represents an effective annual rate of 91%.