Money in Argentina
Argentina - Money
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
On average, panelists participating in the LatinFocus Consensus Forecast see the 7-day repo repurchase rate ending 2018 at 29.78%. They see the 7-day repo repurchase rate decreasing in 2019, closing the year at 19.68%.
Argentina - Money Data
|Money (annual variation in %)||25.7||28.9||28.2||30.4||26.0|
5 years of economic forecasts for more than 30 economic indicators.
Argentina Money Chart
Source: Argentina Central Bank and FocusEconomics calculations.
|Bond Yield||6.69||0.15 %||Dec 17|
|Exchange Rate||27.53||0.45 %||Jul 17|
|Stock Market||26,765||2.26 %||Jul 17|
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
July 2, 2018
In May, industrial production contracted 1.2% over the same month last year, according to data released by the National Statistical Institute (INDEC) on 29 June.
June 29, 2018
The Argentine peso continues to depreciate, despite Central Bank efforts to stem the currency’s slide.
June 27, 2018
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%.
June 27, 2018
Exports fell 6.0% in year-on-year terms in May, contrasting April’s revised 6.5% year-on-year increase (previously reported: +6.2% year-on-year).
June 26, 2018
The monthly indicator for economic activity (EMAE, Estimador Mensual de Actividad Económica) contracted 0.9% in annual terms in April, contrasting the upwardly revised 2.0% expansion registered in March (previously reported: +1.4% year-on-year).