Guido Sandleris explained that the currency band will be updated to 1, seventy five% monthly and that the monetary tainted will grow 0% until the end of the year.
The Central Bank will tighten monetary policy in response to the acceleration of inflation that was recorded in February, which was three, Eight% according to the Indec. That package of measures will include a new objective of modifying the monetary tainted, which will remain stable until the end of the year and a change in the rate at which the floating band of the dollar is updated, which will be lighter than the staunch.
The president of the monetary authority Guido Sandleris announced changes in the monetary policy scheme, which consists in the strict modification of the amount of pesos circulating in the economy. In that sense, the BCRA’s main objective is to maintain that stable monetary tainted, with growth equal to 0%. Until this Thursday that goal was in force until the middle of the year. Now it will remain until the end of the year.
The second measure will be to eliminate the seasonality adjustment of that monetary tainted goal. This means that in a month like June when the demand for pesos increases due to the need to pay bonuses, the BCRA will not take into account that extra appetite for pesos and will maintain the objective of the amount of pesos in circulation that will be obligated to reach.
On the other hand, in a preview of which the hardness of the interest rate will continue, Sandleris affirmed that from now on, the Central Bank will seek to surpass that anticipated monetary tainted goal to the same extent as it did in February. This Thursday the performance of the Leliq reached sixty three, sixty six%, with which they accumulate a rise of about 20 points in just one month.
The last measure of the announced package has to do with the dollar. Since April the flotation band of the exchange rate, which is currently updated daily at a rate of three% monthly, will go to do it at 1, seventy and five% per month.
“We understand the frustration that these levels of inflation generate among people and we know how it affects the entire population. The staunch monetary scheme aims to lower it permanently, “said the president of the monetary authority. “I understand that this statement generates skepticism because inflation was high for many years. But the numbers should not discourage us, “said the official.
The first high numbers of inflation that were recorded in January and February lit the warning lights in the Central Bank. At the end of February, the entity had announced that it would begin a process to tighten its policy to absorb more pesos than expected. The IPC of three, Eight% that the Indec reflected in February decided to the authorities of the BCRA to give a signal to the market that it will tighten more the monetary turnstile to lower the inflation.
The head of the BCRA also announced that the executive branch will send a bill to Congress to change the organization’s Charter. According to Sandleris, the two main changes will imply that “the BCRA’s priority objective is price stability” and “prohibit the Central Bank from financing the Treasury”.
The put up After knowing inflation in February, the Central Bank announced changes in its monetary policy appeared first on MisionesOnline .