The Board of the BCRA has kept the monetary policy rate unchanged and will continue playing a prudent role given the development of the inflation rate, which stood at 5.1% (headline) in December.
The BCRA considers that keeping its benchmark interest rate unchanged will help inflation to gradually slow down in the medium term, consolidating financial and foreign exchange stability.
Setting positive interest rates in real terms ensures protection for savings in pesos, keeping an anchor on foreign exchange rate expectations and favoring the disinflation process.
In the document titled Objectives and Plans for 2023, the BCRA ratified the objective of reducing the annual inflation rate and developing a process to restore trust in the domestic currency as a store of value, preserving monetary and foreign exchange stability.
In this regard, the BCRA will continue to actively use the monetary policy rate, the structure of regulated lending and deposit interest rates, as well as all other available instruments. It is also committed to closely monitoring the development of inflation and monetary aggregates, and to avoiding excessive financial volatility, which could have a negative impact on price formation and on the development of the financial and capital markets.
