Money in Argentina
Argentina - Money
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.
FocusEconomics analysts see the LELIQ rate ending 2020 at 37.84% and 2021 at 30.18%.
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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February 13, 2020
Consumer prices rose 2.3% over the previous month in January, coming in below December’s 3.7% rise and market expectations of a 3.5% increase, according to the National Statistical Institute (INDEC).
February 5, 2020
Industrial production ticked up 1.2% year-on-year in December, according to data released by the National Statistical Institute (INDEC) on 5 February.
January 30, 2020
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%.
January 24, 2020
The Universidad Torcuato di Tella (UTDT) consumer confidence index edged up to 43.0 in January from 42.4 in December.
January 23, 2020
The monthly indicator for economic activity (EMAE, Estimador Mensual de Actividad Económica) fell 1.9% year-on-year in November, after logging a 0.7% contraction in October.