Argentina’s central bank is set to hold its benchmark interest nominal rate steady at 75% this week despite inflation gaining pace once more, but hopes of a potential rate cut early this year are fading as prices heat up, bank sources (BCRA) told Reuters and The Herald. It put the breaks on monetary tightening in October, and has since left the benchmark rate unchanged on hopes that inflation, running near 100% annually, was cooling. Although monthly inflation has ticked up since December, the central bank is not expected to make a new hike. An official central bank source said a rate hike debate was not expected to be “on the agenda” ahead of the board’s weekly meeting on Thursday. A central bank adviser told Reuters on condition of anonymity that the rate was unlikely to be raised or lowered this month.

Source: Bueno Aires Herald February 16, 2023 01:30 UTC