Argentina's Central Bank lowers interest rate

Tuesday, March 12th 2024 - 10:26 UTC

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These initiatives are aimed at increasing liquidity and controlling inflation

Argentina's Central Bank Monday lowered the annual interest rate from 110% to 80% “to strengthen the national economy and improve liquidity in the financial market,” it was reported in Buenos Aires. In addition, it was left up to each bank to decide on the minimum rate for fixed-term deposits.

“At a time when positive signals are emerging in the country's economic horizon, these actions seek to consolidate stability and encourage growth,” the BCRA argued in a statement. These measures seek to “stimulate consumption and investment in the economy.”

“These initiatives of the Central Bank reflect a proactive approach to face the current and future challenges of the Argentine economy, addressing both the need for stability and growth,” the BCRA also noted.

“Through the normalization of the domestic and external payments system, together with a positive outlook on underlying inflation and a prudent management of monetary policy, the BCRA is committed to strengthening the country's economic fundamentals and fostering an environment conducive to sustainable development,” it went on.

“The implementation of these measures is a testament to the Central Bank's commitment to economic stabilization and post-pandemic recovery, laying the foundations for a promising economic future in Argentina,” the document also pointed out.

The new BCRA policies seek to increase liquidity and curb inflation by reducing monetary issuance and improving the balance sheet.