January 30, 2020. The Board of the BCRA reduced today the floor of the interest rate on liquidity bills (LELIQs) by 2 points, from 50% to 48%.
The decision was adopted in view of the recessive conditions in which the economy has been performing and seeks to define an interest rate path compatible with economic recovery.
The recent changes on LELIQ auctions—which implied the extension on terms on BCRA’s remunerated liabilities—involved a reduction of the benchmark interest rate in effective terms. This improved expectations with regard to the development of the monetary policy rate and favored a more efficient control on liquidity conditions.
The monetary policy rate is at adequate values considering the slowdown that the inflation rate is showing.
The Board of the BCRA holds that interest rates should allow the monetary market to reach an equilibrium, thus contributing to optimize saving and financing in pesos.