The Minister of Economy, Luis Caputo, together with the head of the Central Bank (BCRA), Santiago Bausili, announced the second stage of the economic program. They announced that the Central Bank’s passive repos will now be transferred to the Treasury.
The owner of the Central Bank (BCRA), Santiago Bausilileft open the possibility that the monetary policy rate be positive from now on, after move passive repos to the Treasury and thus give it greater “autonomy” to the monetary authority.
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“Interest rates have much more room and it is reasonable to think that they will go into positive territory in real terms“said Bausili in the press conference he gave together with the Minister of Economy, Luis Caputoin it Treasury Palace.
When asked about a Positive rate on fixed-term deposits from private banksBausili pointed out that these are normal market functioning mechanisms and this will be the one that sets the profitability.
However, the head of the Central ventured to state that “It is reasonable to believe that this will go in a positive direction, as private credit and the economy continue to grow and banks return to their traditional business of financial intermediation.”.
BCRA rate
He BCRA Throughout the year the rate has been falling sharply monetary policy ratewhich until now was also that of the passive passes that the monetary authority remunerated, and recently raised it to 40% nominal annual. That equates to a effective monthly yield of 3.3%.
The private banks They take as a reference the BCRA rate at the time of make the fixed term profitable and they are paying less than 3% a month, despite the latest increases. That made many savers decided to get out of income in pesos and will migrate towards the dollarso there was a mini exchange rate run.
Developing.-
