Argentina’s Central Bank increases interest rate by 300 basis points to 78%

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The entity informed in a statement that the Central Bank of Argentina (BCRA) decided yesterday, Thursday, to increase the reference interest rate by 300 basis points from 75 percent to 78 percent per annum.

The increase announced by the monetary entity came after the release of inflation data of 6.6 percent in February, which marked a year-on-year price variation of 102.5 percent, the highest recorded by the country in 32 years.

“The BCRA will continue to monitor the evolution of the general price level, the dynamics of the exchange market, and the monetary aggregates to calibrate its rate policy,” the official communication reads.

Argentine central bank. (Photo internet reproduction)
Argentine central bank. (Photo internet reproduction)

The Board of Directors of the Central Bank announced that the remuneration of time deposits, a savings instrument for individuals and companies, will have an annual nominal yield of 78 percent for individuals and 69.5 percent for other time deposits.

In Argentina, the interest rate is governed by the yields offered by 28-day Liquidity Bills (Leliq), interbank financial instruments.

This is the first increase in the monetary policy rate made by the BCRA in 2023 and since September last year.

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