Argentina’s Central Bank (BCRA) said in a statement that it decided to maintain its basic interest rate at 118%.
The Central Bank didn’t change its monetary policy, despite the fact that the country’s monthly consumer inflation accelerated in August, with a monthly increase of 12.4%, after the devaluation that followed the result of the electoral primaries.
“Inflation was driven by the transmission to prices of the increased financial volatility seen in the second half of last month, as well as by the “recalibration” of the official exchange rate,” BCRA said in its statement.
“High-frequency indicators reflect a slowdown in the pace of growth in the general price level from its peak in the third week of August, which had deepened so far in September,” BCRA added.
The Argentine Central Bank reaffirms that it seeks to ensure positive real returns on investments in local currency in order to preserve monetary and exchange rate stability.
“We will monitor the general price level, foreign exchange market dynamics, and monetary aggregates, as well as the effects of calibrating its interest rate policy and liquidity management,” BCRA added in its statement.
