The Banco Central de la República Argentina (BCRA) reduced its benchmark monetary policy rate on 1 November 2024, lowering the nominal annual rate from 40% to 35%. The central bank also cut its active repo rate from 45% to 40%, resuming an easing cycle that had paused since May as Argentina's inflation rate falls from the levels recorded at the start of the year.
STATED REASONS
The BCRA attributed the cut to liquidity conditions, the fall in observed inflation and inflation expectations, and a stronger fiscal anchor.
REPO RATE
The active repo rate, cut from 45% to 40%, affects the cost of short-term liquidity operations within Argentina's financial system. The parallel adjustment preserves the existing five-percentage-point spread between the two instruments.
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