Monetary Policy Release, December 2022

The Board of the BCRA has kept the monetary policy rate unchanged and will keep an eye on the inflation rate. In November, the headline inflation slowed down to 4.9% and the core inflation, to 4.8%.

The BCRA considers that keeping its benchmark interest rate unchanged will help to consolidate financial and foreign exchange stability, and to reinforce the trend of gradual slowdown of inflation in the medium term.

The BCRA ratifies its policy to normalize the interest rate in accordance with its Objectives and Plans for 2022, where it set its goal of gradually achieving a positive real interest rate for an effective protection for savings in pesos and as an important instrument for anti-inflationary policy.

This interest rate policy is readily developed with the Argentine Ministry of Economy to ensure reasonable spreads between the BCRA's interest rate structure and the National Treasury bills.

In line with the objectives set by the Board, the BCRA maintains the commitment to continuously monitor the past and prospective development of the general level of prices and the forex market dynamics.

In this regard, the BCRA will continue to actively use the monetary policy rate, the regulated structure of lending and deposit interest rates as well as all other available instruments. It is also committed to closely monitoring the development of monetary aggregates, and to avoiding excessive financial volatility, which could have a negative impact on price formation.

December 15, 2022

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