Argentina: Central Bank hikes in April
On 20 April, the Central Bank of Argentina (BCRA) decided to hike the LELIQ rate to 81.00% from 78.00%.
The Bank’s short release didn’t provide explicit reasons for the decision. However, supporting the peso and limiting inflation and inflation expectations were likely the main drivers behind the move. Argentina’s monetary policy is framed in an agreement with the IMF; the country has committed to gradually moving towards positive real interest rates.
Looking ahead, the Bank did not give explicit guidance but stated that it would continue to monitor the evolution of the general price level, the dynamics of the exchange market and monetary aggregates in order to calibrate its policy.