Buenos Aires, May 3rd, 2018. In light of the dynamics of the foreign exchange market and high international volatility, the Monetary Policy Committee of the BCRA held an unscheduled meeting and decided to raise its monetary policy interest rate—usually the center of the repo corridor—by 300 basis points, to 33.25%.
It resolved to widen, on an exceptional basis, the spread between the monetary policy interest rate and the reverse repo rate by 500 basis points, the latter reaching 38.25%.
The monetary authority took this decision with the aim of ensuring the disinflation process. Also, it is ready to take action again if necessary.
The BCRA will go on using all the tools available and conducting its monetary policy to reach its intermediate inflation target of 15% in 2018.