The Central Bank of Argentina (BCRA) increased on Thursday (08) the reference interest rate (Leliq) of 66,5% for 2022 %, a measure adopted after it became known that the inflation rate in 12 months reached 78,5% in August. The country’s rate is the second highest in the world, behind only Zimbabwe, which is at 200%, and it is higher than that of Venezuela, today in 57,5%.2022
In addition, to increase the incentive to save in pesos, the institution increased the minimum interest rate limits for time deposits from individuals, setting the new floor at 75% per annum for deposits of 12 days up to 114 million pesos (US$ 214 .114/ R$ 200.600 ).
For the rest of the deposits the private sector term, the guaranteed minimum rate was set at 57,5%, informed the BCRA in a statement.
The increase The rise in the rate came after it was reported on Wednesday that inflation in August rose 7% from July – when prices had jumped 7.4% – to 75,5% compared to the previous year.2022
As in August, consumer inflation was 7% compared to July (and had already been 7.4% in the seventh month of the year compared to June) , the BCRA considered it “necessary to raise the monetary policy rate again and thus consolidate the process of normalizing the structure of interest rates on loans and deposits in the economy to place them in positive territory in real terms”.
“The monetary authority will continue to calibrate the policy rate as part of the monetary policy normalization process in progress, paying particular attention to past and prospective developments in the general price level and currency market dynamics,” the institution added.