New basic rate, which will come into force from January 31, went from 32% to 29%; new monetary policy aims to stabilize the economy
The Argentine Central Bank announced a reduction in its basic interest rate, which went from 32% to 29%. This change occurs in a context of falling inflation expectations. In addition, the rate for active repurchase operations was adjusted from 36% to 33%. This decision reflects confidence in decreasing inflation, which in December 2024 registered a rate of 2.7%, resulting in an accumulated inflation of 117.8% over the year.
President Javier Milei, who took office on December 10, 2023, has as one of his priorities the fight against inflation. At the time of his inauguration, accumulated inflation was alarming, reaching 211.4%. Central Bank’s new monetary policy aims to stabilize the economy and create a more favorable growth environment.
The new interest rates will come into force from January 31, marking a significant step in the government’s economic strategy. Reducing rates is a sign that authorities are optimistic about inflation control, one of the main challenges faced by the country.
In contrast, the Central Bank of Brazil decided to increase its interest rate to 13.25% per year, reflecting a different approach to monetary policy. This divergence in the strategies of the two countries highlights the different economic realities that each one faces at the moment.
Posted by Felipe Dantas
*Report produced with the aid of AI
