“The significant deceleration that August inflation will show doesn’t provide the sufficient elements yet to conclude that it is convenient to loosen the monetary policy that the Central Bank has been conducting,” Sturzenegger said. “The inflation rate expectations for 2017 are still above the desirable figures. That’s why we’ll continue implementing a counteractive policy.”The Central Bank and the Finance Ministry have been of two minds over which policies to implement in order to lower the inflation rate. Sturzenegger said August inflation would be around 1.5 percent, instead of the one percentage point forecasted by Prat-Gay. “The world has defeated the inflation rate because the central banks have taken the ask of reducing it and their instruments have proven sufficient and their results overwhelming,” he said.

Source: Bueno Aires Herald August 31, 2016 03:33 UTC