- Central bank to hold benchmark Leliq rate at 78% Thursday
- March inflation data Friday expected to accelerate to 7% m/m
According to Bloomberg article published on April X, 2023, Argentina’s central bank board will keep its benchmark interest rate unchanged on Thursday at a weekly meeting despite expectations that inflation data coming Friday will show prices accelerated last month.
Central bank directors are expected to hold the key Leliq rate at 78%, according to two people with direct knowledge. Economists surveyed by Bloomberg estimate prices rose 7% in March from a month earlier, which would be the highest rate since August. Statistics agency INDEC publishes inflation data Friday at 4 p.m. local time.
Central bank President Miguel Pesce won’t attend the meeting Thursday as he’s in Washington alongside Economy Minister Sergio Massa for the spring meetings at the International Monetary Fund and World Bank, the people added.
IMF officials said in a recent statement that accelerating inflation warranted more rate hikes as part of the country’s $44 billion program with the lender. The deal calls for Argentina to keep the effective annual rate, which compounds for interest, above the level of annual inflation.
Tighter monetary policy by Argentina’s central bank in the past year failed to cool annual inflation already above 100%. Officials hiked rates in March for the first time since September.
