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The Central Bank of Argentina (BCRA) raised the 28-day LELIQ rate by 200 basis points, from 42.5% to 44.5%. It also raised minimum rates on peso time deposits to encourage full pass-through.
The bank said the move is part of its 2022 plan to restore positive real returns on peso assets amid rising inflation.
Higher peso rates tend to support the peso and reduce pressure on the official exchange rate, which can ease pressure on domestic feed input costs. The bank's note also cites a commodity supply shock, linking the tightening to food price inflation.
bcra.gob.arWinograd ErickMar 22, 2022Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
