The Banco Central de la República Argentina reduced its monetary policy rate by 300 basis points to 29% on 30 January, taking effect on 31 January, and cut its active repo rate to 33% from 36%, the latest in a series of rate cuts since the administration of President Javier Milei assumed office. The reduction was published on the BCRA's website.
Argentina's inflation rate has fallen since the Milei government took office and enacted fiscal adjustment measures aimed at eliminating the primary deficit.
SEQUENTIAL CUTS SINCE DECEMBER 2023
The succession of rate cuts since the Milei administration assumed office began from a policy rate of 133% in December 2023.
The 300 basis point reduction to 29% continues that pattern. The BCRA's board said the decision was based on the consolidation observed in expectations of falling inflation.