The Bangko Sentral made a decision on fixed term rates to include inflation

Before the confirmation of the inflation index for August 2023, which will be announced next Wednesday, September 13 by the National Institute of Statistics and Censuses (INDEC), the Central Bank (BCRA) has already made a decision about the set term.

The financial institution has decided whether to increase or maintain interest rates for fixed-term deposits, regardless of the inflation index for August 2023.

In this way, BCRA director Agustín D’Attellis maintains that “in principle” no changes will be made so that the Annual Nominal Rate (TNA) and the Annual Effective Rate (TEA) remain at 118% and 208.40%, respectively .

It should be noted that the last increase in interest rates occurred in mid-August, where the economist assured that it is not entirely appropriate to “compare the inflation rate of the month with the effective monthly rate that you have left from. the “Leliq.”

Why doesn’t the fixed term increase?

Through radio statements, D’Attellis assured that the BCRA will not raise interest rates in September 2023, after knowing the inflation rate for August.

In this sense, the decision is linked to the reduction in the price of financial dollars, but especially the blue dollar, which is currently at $705 for buying and $710 for selling.

The financial institution continues that a new increase in interest rates will first affect prices, which recently suffered the strong impact of the 22% devaluation after PASO 2023.

“There are always internal discussions and debates about this, but the truth is that what you have to watch out for is not looking at short terms,” ​​said the economist.