translated from Spanish: The Central Bank increased the rate to 45% and promised not to lower it to October

the Central Bank increased the reference rate by 500 basis points today and took it to 45% a year, with the promise not to return to lower it to October , for fear that the inflation get out of control.

The Monetary Authority announced the decision in the context of a new spike in the dollar, which has already sold more than $30 in the National Bank and exceeded the $31 in other private banks.

The Government led by Mauricio Macri tries to reduce as much as possible the impact that could have the Turkish lira crisis on argentina’s economy. The Eurasian country tries to currently stem a crisis that includes the devaluation of its currency, against a background of tensions with the United States.

“In response to the situation current external and risk implying a new impact on domestic inflation, the Committee of monetary policy (COPOM) decided unanimously sit outside your preset schedule, increasing the rate of monetary policy to” 45% “, it referred to the Monetary Authority in an official statement published on its web site.

“In addition, to ensure that monetary conditions remain its contractive bias, the COPOM is committed to not decrease the new monetary policy rate level at least until the month of October”, confirmed.

In this way, the institution that runs the former Minister of finance, Luis Caputo, will try to reassure financial investors both local and foreign.

dollar economy ECB reference rate

Original source in Spanish