2023-05-16 14:16:44
The Central Bank of the Argentine Republic (BCRA) announced important changes in the country’s interest rates. In an official statement, the entity reported that it has increased the monetary policy rate to 97% and reduced the financing rate for unpaid credit card balances by two points.
With this latest modification, the effective annual rate stands at a high 155%, according to the BCRA in its statement. In addition, it was established that the minimum interest rate for 30-day deposits and up to $30 million is also 97%, which is equivalent to an effective annual rate of 154%.
For time deposits from the private sector, a minimum rate of 90% (138% TEA) is guaranteed. This implies a decrease compared to previous rates. Likewise, it has been decided to reduce the financing rate for unpaid balances of credit cards for individuals by two points, which will go from 88% to 86% TNA as of June.
In relation to the rates of the Financing Lines for the Productive Investment of MiPyme, the condition of subsidized lines will be maintained. For Investment Projects, the rate will be 76%, while for Working Capital it will be 88% TNA.
The BCRA argued that this decision is based on its objective of achieving positive real returns on investments in local currency and acting quickly to prevent financial volatility from boosting inflation expectations. In addition, he pointed out that this measure is in line with the short-term interest rates of the debt instruments of the National Treasury.
The statement also made reference to the variation in the Consumer Price Index (CPI) in April, indicating that the 8.4% increase was driven by increases in the Core (8.4%, +1.2 pp) and Seasonal (12.6%, + 3.3 pp), while Regulated (4.9%, -3.4 pp) experienced a slowdown in April, after registering a significant increase in March.
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