The Banco Central de la República Argentina reduced its monetary policy rate from 35% to 32% on 5 December 2024, the latest in a series of rate reductions since President Javier Milei took office in December 2023. The central bank also cut its active repo (pases activos) rate from 40% to 36%. The new rates took effect on 6 December; the BCRA said the decision was taken in light of the observed consolidation of lower inflation expectations.
The BCRA cited the observed consolidation of lower inflation expectations as the basis for reducing the TNA — the nominal annual rate — by a further three percentage points.
INFLATION DATA
Monthly inflation had already slowed to 2.7% in October 2024, from 25.5% in December 2023.
The BCRA's statement did not set out a path for further reductions.
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