Economy · August 6, 2022

Monetary Policy of Argentina July 2022

On July 28, the Central Bank of Argentina (BCRA) decided to raise the LELIQ rate to 60.00% from 52.00% in a while to tame inflation. The Bank also raised a number of secondary rates.

The decision came at a time of rising inflation and a weakening of the peso. The current monetary policy stance of the BCRA is framed in an agreement with the IMF, which commits the country to gradually move towards positive real interest rates. The Central Bank added that it is expanding its coordination efforts with the Ministry of Economy in order to progressively reduce the monetary financing of the fiscal deficit.

Looking ahead, the Bank hinted at a further “calibration” of the reference rate in the context of the gradual normalization of its monetary policy stance.

FocusEconomics analysts see the LELIQ rate ending in 2022 at 65.55% and in 2023 at 63.16%.