Last week, the province of Córdoba released its inflation rate for July. The headline and core inflation rates were 1.7% and 2.3%, respectively, going down in both cases against June (from 2.7% and 2.6%). This downward trend is consistent with other indicators and estimates from public and private sources that suggest, as stated in previous releases, a significant drop in July’s inflation. In turn, high-frequency indicators suggest that disinflation is still in process in August.
In line with this dynamics, the BCRA reduced both the monetary policy interest rate and the repo rates by 25 basis points, the former falling to 29.75%.
Moving on in the same direction, the BCRA will continue to take precautionary actions, including those of anti-inflationary nature to make sure that a sustained disinflationary process will achieve the objective for this year (1.5% monthly inflation or less in the last quarter).
Note: From now on, the BCRA’ monetary policy and the outcome of LEBAC auctions will be published separately. The monetary policy decision will be included in the weekly Monetary Policy Release, which will be posted in the Home section of the new website of the BCRA. The results of LEBAC auctions will be reported in a communication P.
