Due to the acceleration of inflation, UVA fixed terms flew last month

From the hand of one rising inflation expectations and with the cost of living rising around 6% in April, savers have turned to making placements associated with price increases. The stock of UVA time deposits in banks grew nearly 20% and reached nearly $ 42,000 million in the fourth month of the year.

This week, Indec will announce the IPC corresponding to April and the Government has already expected that the number will “give bad”. Driven by price increases on the streets and in services, and after 6.7% reported by the agency in Marchor, more savers decided to turn to indexed deposits in banks.

According to the calculations of the consulting firm LCG in real terms, that is, reducing inflation for the period, fixed terms associated with price developments rose more than 11% last month. This is the highest monthly growth for this form of savings in banks since April last year and the data suggests the search for coverage of savers in the face of inflation they find difficult to give up.

In the last twelve months, the stock of UVA time deposits grew more than 108%, more than inflation last year. Their participation in the total stock is still marginal: they are almost 6% of traditional time deposits in banks. By design, they have a minimum duration of 90 days, they tend to lose attractiveness at times of changing exchange rates.

But the relatively calm of the dollar in recent months, added to a perception of rising inflation, has returned them to the most convenient options for savers who want to keep the value of their pesos.

The rate paid by these instruments is different if it is pre-canceled or if it is held until maturity. In the first case, the annual nominal interest rate is set in pesos and is currently at 41% (the annualized effective rate is 49.66%). In the second case, and in the case of humans, a guaranteed minimum UVA interest rate and an “extra” 1% are paid.

LCG analysts explained: “In the context of accelerating inflation and with expectations that are unlikely to be anchored in the short term, we understand that CER -adjusted deposits will continue to have a share until projections of higher inflation remain. ”Last Friday, the Central Bank released its Market Expectations Report and major players in the City are already seeing inflation above 65% for this year.

In this context, the fourth successive rate hike faced by the Central Bank last month, is not enough for “traditional” fixed terms to have the same momentum. Overall, this type of placement grew 1.6% in real terms last month, but was largely driven by an increase in wholesale placements.more than $ 1 million.

This segment saw its stock rise 2.5% above inflation and represent 77% of total placement in banks. Going forward, it is expected that with a new adjustment to the body reference rate led by Miguel Pesce, traditional fixed terms will continue to expand, albeit moderately compared to the UVA boom.

“The diversion of sight placements towards time deposits and especially those indexed in the CER is further proof that the recovery of the demand for money is not over,” they warned the LCG.