Argentina’s Central Bank: Interest Rate to 97 Pct


16 de mayo de 2023 Hora: 05:09

On Monday, the Argentine central bank raised the benchmark interest rate by an additional 600 basis points, thereby escalating the annual rate from 91 percent to 97 percent.

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According to the bank, the objective of this decision is to promote «positive real returns on investments in local currency» and «prevent financial volatility from acting as a driver of inflation expectations.»

As per the bank’s investigation, the inflation rate experienced an increase of 8.4 percent in April, in comparison to March.

The decision serves as a complementary component of a comprehensive set of economic measures that were recently announced by the government. The primary objective of these measures is to mitigate inflation, stabilize the exchange rate, and ensure sustained levels of economic activity.

«The central bank will continue to monitor the evolution of the general level of prices, the dynamics of the financial market and exchange rates,» the bank said.

Additional measures comprise intensifying negotiations with the International Monetary Fund, fostering consumer spending by reducing the interest rate on credit card transactions, and granting tax incentives to stimulate economic endeavors.

Furthermore, the government has stated that it will suspend current anti-dumping regulations «in order to favor the importation of inputs used to produce essential products for industry and activity in different value chains.»

Autor: teleSUR/ YBC

Fuente: TheStar

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