The Central Bank of Argentina (BCRA) lowered its reference interest rate again on Thursday (11), from 80% to 70%, in a context in which a “slowdown” in inflation is observed, according to an official statement of the institution.
This is the third interest rate adjustment applied by the BCRA since the country’s president, Javier Milei, took office in December last year, when it was 133%.
“After the initial correction of relative prices in December 2023 (with a strong devaluation of the peso against the dollar), a sharp slowdown in inflation is observed, despite the strong statistical drag that carries inflation in its monthly averages,” stated the BCRA in the statement.
The monetary institution also warned that “in the coming months” “underlying inflation measurements (without regulated or seasonal prices) will assume greater relevance”, taking into account the announced adjustments to regulated tariffs for public services”.
Taking into account “the evolution of the economic situation and liquidity conditions”, the BCRA also made access to the free exchange market more flexible so that micro, small and medium-sized companies can pay for their imports within 30 days – in a scenario of strong restrictions exchange rates – and pay advances of up to 20% on capital goods.