Argentina’s central bank (BCRA) held its benchmark interest rate at 27.25 per cent on Tuesday, reiterating in a statement that high-frequency indicators suggested core inflation would remain high in April, but below March levels.
The central bank of the third largest economic country of Latin America said that inflation would begin to fall in May after a series of hikes in regulated prices end this month.
The BCRA said several factors, including salary negotiations, supported the bank’s target of 15 per cent inflation this year, reports Reuters.
If inflation fell slower than expected in coming months the bank would raise its policy rate, the lender said in the statement.
Consumer prices in the upper-middle income economic country rose 2.3 per cent in March, slightly down from the 2.4 per cent increase in February.
Twelve-month inflation of the country was 25.4 per cent, the same level as February.
The BCRA said in its twice-monthly policy statement it did not expect significant depreciation of the peso currency in the coming months, after it sold over $2 billion in reserves this year to halt the peso’s slide.