Argentina Central Bank Holds Policy Price For Fourth Week
Argentina central financial institution holds policy charge for fourth week
BUENOS AIRES Oct 18 Argentina's central financial institution saved its reference price unchanged at 26.seventy five percent for the fourth straight week on Tuesday because it sought to lower inflation expectations.
The 4 weeks of steady coverage come after eight consecutive weeks of cuts, as market expectations for inflation both this year and next have exceeded official forecasts.
A central bank poll of economists this month showed expectations for inflation of 39.6 p.c in 2016 and 20 percent in 2017. The financial institution's inflation goal for next 12 months is 12 to 17 p.c, while the government sees it at 17 percent.
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"To consolidate the disinflation that is already happened this 12 months, and to advance the process of convergence toward the announced 2017 inflation expectations, the Central Financial institution has determined to maintain its financial coverage fee at 26.seventy five %," the Central Bank said in a statement.
In a quarterly financial policy presentation on Tuesday, Central Financial institution President Federico Sturzenegger mentioned he was inflation would fall and the financial system would return to development next 12 months.
Consumer prices rose 1.1 p.c in September, up from zero.2 percent in August but lower than earlier months this yr largely because the Supreme Court ordered the federal government to suspend subsidy cuts that had lifted dwelling heating fuel prices.
The federal government reinstated the subsidy cuts earlier this month, nevertheless, meaning client prices will probably start to rise once more. The central bank is focusing on 1.5 percent month-to-month inflation for the fourth quarter of 2016.
Sturzenegger emphasised that the current tempo of monthly client worth increases represented annualized inflation of less than 20 %. (Reporting by Luc Cohen; Editing by David Gregorio)
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