Wednesday, August 10, 2016 LEBAC note rate sinks to lowest level yet in Macri eraThe Central Bank cut its reference rate yet again, as its weekly LEBAC note auction was down by 0.25 percentage points in yesterday’s sale, reaching 29.75 percent on the year for the shortest-term notes. When Sturzenegger took office, rates stood at 30 percent, before being raised to 38 percent in a move to drastically cut the amount of money circulating. The Central Bank inaugurated a new version of its website yesterday, with monthly inflation and 35-day LEBAC notes rates highlighted in the displayed information. The monetary authority argues that rates should remain slightly above monthly inflation for their policy to be successful. With monthly inflationary figures now finally slowing down following the big spike seen following December’s devaluation and the government’s subsequent utility rate hikes, the Central Bank argues that there is room for cautious interest rate cuts, as otherwise the monetary contraction could prove too severe.

Source: Bueno Aires Herald August 10, 2016 02:26 UTC