Tuesday, June 13, 2017

Argentina maintains rate as disinflation process resumes

    Argentina's central bank left its monetary policy rate steady at 26.25 percent, saying inflation had resumed its process of disinflation and it would continue to maintain a clear anti-inflationary bias to ensure this process continues so inflation reaches its 2017 target of 12 to 17 percent.
     The Central Bank of Argentina (BCRA) last changed its rate on April 11 this year when it raised it by 150 basis points.
      Argentina's general inflation rate eased to 24.0 percent in May from 27.5 percent in April and last week the central bank's president, Federico Sturznegger, said the rate would fall to 21 or 22 percent by July.
     The central bank said today that 2017 expectations for general inflation rose to 21.6 percent from 21.0 percent. For the next 12 months, general inflation expectations eased to 17.4 percent from 17.9 percent.
     By 2018 expectations for general inflation rose to 15.0 percent from 14.6 percent and to 13.5 percent from 13.0 percent for core inflation.




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