For the monetary and financial policy design, the BCRA decided to use an interest rate corridor composed of the interest rate on short-term Treasury Bills, the monetary policy interest rate—28-day LELIQs—and the interest rate on overnight repos.
Under this new corridor, the interest rate on repos set by the BCRA will be the floor and the interest rate on short-term Treasury Bills will be the ceiling.
This decision is part of a strategy that simultaneously addresses the following objectives:
- Set a positive interest rate scheme in real terms for the economy.
- Strengthen the public debt market in pesos to achieve depth and liquidity.
- Gradually increase the use of Treasury instruments as monetary policy instruments.
This will increase the use of the interest rate as an economic policy instrument, enabling companies and individuals to obtain appropriate yields in the financial and securities markets.
July 14, 2022