The skyline in Argentina

Argentina Monetary Policy January 2020

Argentina: Central Bank lowers interest rate floor again at January’s last meeting

On 30 January, in a bid to stimulate the economy, the Central Bank of Argentina (BCRA) decided to reduce the lower floor for the LELIQ rate to 48.0%. On 16 January, the Central Bank had set a new lower floor for the LELIQ rate, at 50.0%, also opting for a two-percentage-point cut. This brings the total number of lower-floor cuts delivered by the new BCRA’s President Miquel Ángel Pesce, who took office on 10 December, to five so far.

Going forward, it remains to be seen if recent cuts will be able to reactivate economic activity or whether they will stoke price pressures. Lower interest rates and an expanding monetary base could translate into higher liquidity, putting pressure on the peso and fueling inflation.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest