In November, the broad monetary aggregate private M3, in real terms and adjusted for seasonality, would have registered a fall of 2.4%, slightly higher than that observed in October. While time deposits and working capital held by the public continued to make a negative contribution to its growth, demand deposits contributed positively, unlike what happened in previous months.
The fall observed on average in the private sector’s time deposits in pesos in real terms was due to the negative “statistical carryover” left by October, since the balance of these placements registered between October 31 and November 30 an increase of 0.7% ($13,800 million), observing a recomposition in the balance of deposits of more than $20 million.
Within the framework of the process of progressive harmonization of the interest rates of the monetary policy instruments being carried out by the BCRA, the monetary authority decided to raise, effective November 13, the interest rate with which it remunerates 7-day passive passes by 2 p.p., bringing it to 36.5% (43.87% y.a.). In turn, it increased the 1-day pass-by-pass rate by 1 p.p. to 32% (37.69% y.a.).
In addition, the interest rate of the LELIQ increased by 2 p.p., which returned to 38% (45.44% y.a.), thus reversing the declines of October. At the same time, in an effort to sustain positive yields in real terms, the BCRA raised the minimum guaranteed interest rate on fixed-term deposits in pesos. Thus, that corresponding to deposits of individuals for an amount of up to $1 million increased to 37%
(43.98% e.a.), while that of the rest of the deposits of the private sector rose to 34% (39.84% e.a.). The coefficient that determines the fixed prepayment rate of deposits with an early cancellation option in UVA was also increased, bringing it to 30.50%.
In nominal terms and without seasonality, loans in pesos to the private sector registered a monthly expansion of 2.9%. As in the previous month, credit cards and financing instrumented through documents accounted for most of the increase. In real terms, loans to the private sector would have remained relatively stable compared to October. It should be noted that in November, the new financing scheme for productive investment (LFIP) of MSMEs came into force, which includes a line for the financing of capital investment, with a maximum interest rate of 30% n.a., as well as a line for working capital at a maximum rate of 35% n.a. In turn, it includes a line of credit for non-MSME customers that will reach Health Service Providers that provide hospitalization services in the framework of the COVID-19 emergency and other companies for the acquisition of machinery and equipment produced by MSMEs at a maximum rate of 35% n.a.
