The BCRA sets the floor of the interest rate on LELIQs at 58%

The Board of the BCRA reduces the floor of the interest rate on liquidity bills (LELIQs) by 5 points, from 63% to 58%. The Board of the BCRA considers that the benchmark interest rate is inappropriate and potentially inconsistent with the projected nominal evolution of key economic variables for a number of reasons: the current macroeconomic situation during this period of transition; the changes that the bill brought before the National Congress will entail; a call for a social pact; and the search for a sustainable sovereign debt scheme. Additionally, a sustainable management of national debt in pesos will surely result in a new interest rate curve in domestic currency. Finally, it is worth noting that LELIQs are affected by the current high inflation rate precisely because they are very short-term (seven days) financial instruments.