The skyline in Argentina

Argentina Monetary Policy June 2018

Argentina: Central Bank maintains rate unchanged at record-high 40.00%

At its latest meeting held on 26 June, the Central Bank of Argentina (Banco Central de la República Argentina, BCRA) decided to leave the 7-day repo reference rate unchanged at an all-time high of 40.00%. The decision matched market expectations, as the Bank attempts to restore confidence following a heavy devaluation of the peso and the intervention of the International Monetary Fund.

Stubbornly high inflation was behind the Central Bank’s decision. According to the National Statistics Institute (INDEC), national consumer prices rose 2.1% month-on-month in May, which was nevertheless below April’s 2.7% increase. However, according to the Bank, high-frequency indicators suggest the month-on-month increase in consumer prices accelerated in June, partly due to significant exchange rate instability in the past few weeks. Meanwhile, national inflation rose from 25.5% in April to 26.3% in May, well above the Bank’s target of 17.0% to be reached by the end of 2019.

The Bank stated that it remains ready to take additional actions to contain inflation if needed and considers the government’s ongoing efforts to curb public expenditure as positive in terms of containing inflation. Therefore, it considers a tight monetary stance as essential to anchoring market expectations and bringing inflation to target.

Argentina Interest Rate Forecast

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