Saturday, June 10, 2023

How much will the stipulated terms pay for savers after the sharp increase in BCRA rates?

With rising inflation, savers get higher returns.
With rising inflation, savers get higher returns.

The Board of Directors of the Central Bank gave this order on Thursday Increase Annual Nominal Interest Rate of Liquidity Papers (Leliq) for 28 days, to pass them by 52% and 60%Which represents an annual effective rate (TEA) of 79.8%, which is close to inflation forecasts from private advisors.

Also, as a result of this increase, BCRA Raised the minimum interest rate that human individuals must pay on certain conditionsto install it on a new floor 61% Annual Nominal Up to 10 million pesos for 30-day deposits.

it is Strong growth, even 800 points Original as Leliq, a . represents Yield of 81.3% in annual effective termsThat is, if the fixed term is renewed month after month with principal and interest for one year.

thus, A 30-day retail fixed term will pay a yield of 5.08%. To date, this deposit for natural persons paid a rate of 4.4%. Thus, the rate for the small saver Will approach inflation but not match it: In June, the Consumer Price Index (CPI) rose 5.3% and for July advisors expect an increase of between 7% and 8%.

For him balance fixed deposit Private sector, guaranteed minimum rate has been established 54%, which represents an annual effective rate of 69.6%As reported by the monetary unit.

“The economy faces increased price volatility in the context of financial volatility unrelated to the country’s macroeconomic fundamentals. In line with the 2022 objectives and plans, the Monetary Authority will accelerate the process of normalizing the policy rate and the interest rate structure of the rest of the economy. considers necessary to bring them to a realistically positive ground, so as to contribute to the preservation of financial and exchange stability”, the presiding organization said. Miguel Pesce,

BCRA indicated that it expects these actions to lead to a steady decline in inflationWhile adding that “in recent weeks, coordination efforts have been deepened with the Ministry of the National Economy aimed at establishing a fiscal strategy that would make it possible to progressively reduce monetary financing to the Treasury.”

How much will the stipulated terms pay for savers after the sharp increase in bcra rates?

With the establishment of an interest rate structure or “corridor” within this coordination, as detailed by the Centre. spreads Between instruments of the BCRA (Leliq and Passes) and Treasury Bills (Ledes), i.e. “quasi-fiscal” debt issued by the BCRA—an autocratic body—and sovereign bonds issued by the national government.

“The positive results of the latest auction of debt instruments in pesos in terms of net financing reinforce the outlook for the declining stock of remuneration liabilities of the BCRA in terms of GDP. Will continue to calibrate, with particular attention to the past and potential developments of the general level of prices and forex market dynamics, emphasized the BCRA.

read on:

Due to strong inflation in July, central bank hikes rate by 800 basis points: biggest hike since 2019
Dollar Today: Free Price Drops to $314 and “Counted With Liquid” Falls 9%
Rate hikes in the US will stimulate capital outflows from Argentina and bring more inflationary pressure
The government doubled the amount of temporary loans in a month and jeopardized the fulfillment of a key target with the IMF
Amid rumours, Sylvina Batakis went ahead with her adjustments and raised the rate for loan refinancing to 70%

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news


Please enter your comment!
Please enter your name here