Miguel Pesce, president of the Central Bank.
Given the high inflation in Argentina, The board of the Central Bank (BCRA) ordered this Thursday a sixth adjustment so far this year of the reference interest rateto maintain the positive real rate in pesos, as the Government agreed with the IMF.
A) Yes, The entity decided to raise the annual nominal interest rate of the 28-day Liquidity Letters (Leliq) by 300 basis points, which went from 49% to 52%.while also raising the yield of 180-day bills to 58.5% and that of one-day repos, which will be 40.5%.
Along the same lines, too raised by 5 percentage points the minimum return on retail time deposits made by individuals. The new floor will be 53% per annum for 30-day placements up to $10 million pesos. That return is equivalent to an effective annual rate of 68%.
Meanwhile, for the rest of the fixed-term deposits of the private sector, the guaranteed minimum annual rate was established at 50%, which meant an improvement of four percentage points from the previous level. The effective annual rate will be 63.2%.
“The BCRA will maintain the mechanisms by which it guarantees that the rise in the monetary policy rate is transferred in full to depositors, both individuals and companies, through fixed terms with a minimum rate and UVA fixed terms,” he said. the entity in a press release.
Along these lines, the Central Bank pointed out that “the data for May confirmed the deceleration in inflation that had begun in April, with a significant drop in the core category,” and expressed that “it expects the monthly inflation records to continue to decline gradually”.
RISES THE COST OF CREDIT
Not only are rates rising for depositors, but the BCRA also defined an increase in the cost of loans and financing through credit cards
Thus, with respect to the “Now” plans of fixed installments with subsidized rates, the final costs for the user increased, on average, 10 points:
– They went from 33% to 42% nominal annual rate for plans of 3, 6 and 12 installments.
– Raised from 38% to 49% nominal annual rate for schemes of 18 and 24 fixed payments.
Despite the rise, rates will remain below expected inflation, so they will continue to be among the most preferred by consumers.
On the other hand, the maximum refinancing rate for outstanding balances on credit cards up to $200,000 was increased from 53% to 57% annual nominal.
In addition, the BCRA raised the interest rates of subsidized loans for companies: the productive investment line is increased by 5 percentage points: it will have a nominal annual rate of 42%. For its part, the working capital line will have a rate of 52.5%.