The rate harmonization seeks to have an effect on short-term rates in the economy, limiting the cost of sterilization.
Today, the Board of the BCRA has taken measures to continue with the strategy of harmonizing monetary policy interest rates and maintaining a positive real return on savings in pesos.
The BCRA has decided to raise the overnight reverse repo interest rate to 30% APR (annual percentage rate)— which implies an increase of three points against the current rate—, and to offer 7-day reverse repos at 33% APR. In addition, the yield of Liquidity Bills (LELIQs) was set at 36%.
In order to complete the process of rate harmonization, the BCRA has increased to 34% APR (39.84% EAR) the minimum rate on time deposits at 30 days for individuals’ deposits under ARS 1 million, and to 32% APR (37.14% EAR) for the others.
October 15, 2020.