Before the inflation data, the Bank raised the rate by almost 10 points, to 69.5%

Before the first tender of the Treasury in the Massase era, scheduled for this afternoon, the Central Bank anticipated with a new rise in reference rates. The organism raised the Leliq rate by 950 basis points, which will become 69.5% nominal per year, which pushes the annual effective rate to 98.8%.

The market has taken a rate hike for granted for this Thursday, the day in which the data on INDEC inflation will be known, but the decision of the BCRA was above the expectations that had risen in the city. In the latest fare decision, the Board of Directors of the body had raised the Leliq to 60% and it was expected that this time the adjustment would leave them at 66%.

With this adjustment, the Central Bank raised 1,750 basis points in less than a month, as in the last week of July the Leliq was still at 52%. The decision also regulates the rate passes to 1 day. It is also about more aggressive adjustment of the cost of money that the body faces from the crisis that has arisen after PASO in 2019.

The sharp correction in the interest rate was noted during the Liquidity Letters (Leliq) tender held by the monetary authority on Thursday. The Central Bank anticipated the meeting of the board of directors and in that usual operation he communicated to the banks the change in the yields in pesos.

“We are writing to inform you that the Central Bank of the Argentine Republic will offer the market today 28-day liquidity letters at a rate of 69.50% in a single tender,” he said. financial entities in the operating system through which offers are processed.

It is expected that, in coordination, This afternoon will see an increase in yield for investors in the Treasury auction. The Ministry of Economy seeks to capture nearly $ 900,000 million in the debt market.

Without further definition by the Central Bank, for now, it is estimated that the decision of the monetary authority will have an impact on the rates of the fixed terms, which currently stand at 61% of TNA for 30-day placements up to 10 million. dollars. If the same rate hike by the Central Bank were ratified, the yield on the 30-day fixed term would exceed 70% per annum.

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