November 7, 2017 / 8:43 PM / 9 months ago

UPDATE 1-Argentina central bank raises policy rate to 28.75 pct

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BUENOS AIRES, Nov 7 (Reuters) - Argentina’s central bank raised its policy rate to 28.75 percent on Tuesday, up from 27.25 percent previously, as inflation expectations rise, the monetary authority said in a statement.

It was the bank’s second consecutive hike after a long period of holding the rate steady.

Inflation expectations for 2017 rose to 23 percent, up from 22 percent the prior month, according to the bank’s monthly poll of economists published last Thursday.

September data put Argentina’s inflation at 1.9 percent, higher than previous months. The country’s cumulative inflation rate is 17.6 percent for the first nine months of the year, above the 12 percent to 17 percent target range for 2017.

October inflation will be published next Tuesday.

The central bank said in a statement that high frequency indicators show a lower level of inflation since October, however.

“The monetary authority will seek to accentuate the inflationary decline and minimize the impact of the next regulated price increases,” the bank said.

The bank said it expects the declining trend of core inflation to consolidate more rapidly in the coming months, moving toward the 2018 target range of 8 percent to 12 percent. (Reporting by Cassandra Garrison and Walter Bianchi; Editing by Sandra Maler)

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