After the INDEC released this Thursday, May 12, the inflation data, the authorities of the Central Bank of the Argentine Republic (BCRA) raised the rate by 200 basis points. interest rate of fixed terms. For human persons, the new floor is set at 48% per year for 30-day deposits, up to 10 million pesos, which represents an Annual Effective Rate (TEA) of 60.1%.
For the rest of the fixed-term deposits of the private sector the guaranteed minimum rate is set at 46%which represents an Annual Effective Rate of 57.1%.
The change that Javier Milei proposes in the system “is an error” already demonstrated by Milton Friedman
The Board of Directors of the BCRA raised the yield of the Liquidity Letters (Leliq) to 28 days by 200 basic points, going from 47% to 49%which represents an Annual Effective Rate of 61.8%.
The rates for investment and production
Lending interest rates remain at favorable levels, especially for investment and production, and the MSME sector. The Productive Investment Line has an annual nominal rate of 37% and the Working Capital Line of 47.5%.
Additionally, the BCRA will continue to regulate certain key rates for family consumption.
The Central Bank relaxed the restrictions for some medicines and pharmaceutical supplies
As suggested by the high-frequency indicators monitored by the BCRA, in April there was a slowdown in the general level of prices compared to the rise registered in March. The BCRA expects inflation in the coming months to continue to decline gradually.
The current international financial conditions and the recent behavior of the commodity markets suggest that a certain stability in the prices of raw materials may have been achieved.
The BCRA will continue to monitor the evolution of prices and will evaluate reverse the bias of monetary policy as soon as a downward path of the inflation rate is consolidated.
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