Money in Argentina
Argentina - Money
Central Bank lowers interest rate floor again at March’s meeting
On 5 March, in a further bid to prompt an economic recovery and amid some moderation in inflationary pressures, the Central Bank of Argentina (BCRA) decided to reduce the lower floor for the LELIQ rate to 38.0%. On 19 February, the Central Bank had set a new lower floor for the LELIQ rate, at 40.0%, opting to cut the rate by four percentage points. 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 eight so far.
Looking ahead, it remains uncertain whether the cuts will support the economy or whether they will simply fuel inflation. Lower interest rates and an expanding monetary base could translate into higher liquidity, putting pressure on the peso and stoking price pressures.
FocusEconomics analysts see the LELIQ rate ending 2020 at 36.69% and 2021 at 30.16%.
Argentina - Money Data
|Money (annual variation in %)||28.9||28.2||30.4||26.0||22.8|
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||59.88||0.45 %||Dec 30|
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April 7, 2020
Industrial production fell 0.8% year-on-year in February, according to data released by the National Statistical Institute (INDEC) on 7 April.
March 31, 2020
The monthly indicator for economic activity (EMAE, Estimador Mensual de Actividad Económica) fell 1.8% year-on-year in January, after logging a 0.2% dip in December.
March 27, 2020
Exports fell 2.8% in year-on-year terms in February, following January’s softer 0.8% dip.
March 26, 2020
Economic activity in the fourth quarter fell 1.1% year-on-year, following Q3’s sharper 1.8% slump, according to the Statistical Institute (INDEC).
March 16, 2020
The Universidad Torcuato di Tella (UTDT) consumer confidence index edged down to 42.7 in February from 43.0 in January.