2023-09-14 17:54:00
After the INDEC released August inflation, which was 12,4% monthly and 124,4% year-on-year, the board of directors of the Central Bank decided to keep the monetary policy rate unchanged at 118%.
In this way, the Annual Effective Rate (TEA) remains at 209%. “In August, the monthly inflation rate was 12.4%, driven by the transfer to prices of “greater financial volatility recorded in the second half of the month and the recalibration of the level of the official exchange rate”the monetary authority said in a statement.
“Nevertheless, High frequency indicators reflect a slowdown in the pace of increase in the general price level from the peak of the third week of August, which would have deepened so far in September,” he added.
Inflation of inflation
Likewise, he assured that “the interest rate policy of the Central Bank seeks tend towards positive real returns on investments in local currency, in order to preserve monetary and exchange stability.”
When was the last interest rate increase?
It should be remembered that the last time the monetary authority raised rates was on August 14, following the PASO and the devaluation of the official exchange rate of 22%. At that time, it increased 21 percentage points The interest rate that banks pay on fixed-term deposits.
According to different analysts, and despite the fact that the International Monetary Fund asked to keep rates in positive territory, the Central Bank’s decision responds to the fact that the quasi-fiscal deficit would worsen, which in July reached 8% of GDP.
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