The findings of the Market Expectations Survey (Relevamiento de Expectativas de Mercado, REM) performed by the BCRA were released last week. The following table shows the most relevant findings.
| Inflation index | Term | Date of survey | Change | |
|---|---|---|---|---|
| Nov-16 | Oct-16 | |||
| Headline CPI – Greater Buenos Aires (GCBA) | Next 12 months | 20.5 | 19.8 | 0.7 |
| 2017 | 20.2 | 19.7 | 0.5 | |
| Core CPI – GBA | Next 12 months | 18.4 | 18.0 | 0.4 |
| 2017 | 18.0 | 17.4 | 0.6 | |
Inflation expectations for the next year increased by about half a percentage point, both for the headline and core inflation levels.
In turn, the estimates and high-frequency indicators from public and private sources monitored by the BCRA suggest that prices have been in line with expectations of a 1.5% or lower average inflation rate in the last quarter of 2016.
In view of the available data, the BCRA decided to keep the 35-day LEBAC rate and the center of the repo corridor at 24.75%.
As part of the transition to the 7-day repo rate as the monetary policy rate, to take place in January, the BCRA reduced the width of the repo corridor by 200 basis points, both for 7-day and overnight transactions.
The BCRA will continue taking anti-inflationary measures to ensure a sustained disinflationary process towards its inflation target between 12% and 17% in 2017.
