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Argentina holds key interest rate steady at 26.25 pct
May 9, 2017 / 9:29 PM / 6 months ago

Argentina holds key interest rate steady at 26.25 pct

BUENOS AIRES, May 9 (Reuters) - Argentina’s central bank kept its benchmark interest rate at 26.25 percent on Tuesday, the second time it held the rate steady since raising it on April 11.

The bank highlighted a central bank poll of analysts published last Wednesday that showed inflation expectations for 2017 fell slightly to 21 percent from 21.2 percent a month earlier but were still above the 17 percent upper band of the bank’s target.

“Estimates and high-frequency indicators from state and private sources monitored by the central bank confirm that April inflation was at a higher level than that sought for this time of the year, while suggesting that in May the economy will resume the process of disinflation,” the bank said in its twice-monthly policy statement.

The bank has been using inflation in Buenos Aires to calculate monetary policy but said it would begin using a national inflation index in July, when statistics agency Indec starts publishing one.

The central bank believes the two indexes will be similar, the statement said. (Reporting by Caroline Stauffer; Editing by Peter Cooney)

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