Despite being & # 39; eliminating the level of application level (Leliq) and bringing forward a new oversight of the Fundamental Funds goal in December, The Middle Bank is worthwhile to keep it carefully over the next few months to achieve its goal of slowing down at hyperinflation.
"They went through two months of insolvency and we want to confirm that the floor does not eliminate the rate that means we're going to reduce our guard", the BCRA wells said domain.com.
The level of landing authority was 60% at the level of refining it maintained before the inflation expected in two months after a split. As a result of the average inflation rate for the next 12 months, measured by Market Survey (REM), 29% came in November, over 4 smaller points than at the end of August.
"We get two months of a big case and we want to continue to show what we are doing, but the warning is continuing, it is not It is given as we have a floor of 60%, we will continue in this line over the next few months ", which stressed the BCRA, and thought it "Time and fair" abolish the level of the degree as it is limited "the character that is completely unusual of the level of interest in the cash equality regime".
At the same time, they emphasized this month "Very vigilant so that the rate of changes can not be completed suddenly".
After this statement, in a bid on Wednesday, Leliq's drive was 60%, with the average reach 59.102% per annum, the lowest in more than a few months.
In addition to this new low level, in the authority, they are avoided from & # 39; identify a path and rate reduction rate. They reiterate that "The rate rate is underestimated, because the rate is defined by its market. Today it is going down, but finally it is possible to go up." "We prefer this to be a snare on market conditions", indicated the sources of the entity, which confirmed that the current cash scheme will be maintained at least until the end of 2019.
The entity that is doing Guido Sandleris It allowed to give a little more opportunity and to show some of the baseline objectives in December. In that way, The Central Bank's Finance Policy Committee (COPOM) said it will also meet the December target, following the same goal in October and November. At least $ 16 billion will be provided (including seasonal).
"So far, we have exceeded the fundamental, diminished objective, and that's what we do. gives us a room to move. In December we could increase 6.3% of the first goal, which was an increase of the current level of almost 8%. But what we decide to be & # 39; expect us not to use it instead but we will continue to & # 39; maintain the oversight that we have accumulated to date " detailed sources of the entity.
In addition, the BCRA stated that it reduced its purchases in December of criminals to 50 million from 150 million through offers, if the price of money was to excavate the floor of the non-intervention sector . Therefore, the collection in the month of applications may not exceed 2% of the target set. "This means our conclusions are totally comprehensive and subject to control of clarity, further advanced to the level of exchange"they are interpreting.
On the other hand, if the exchange rate is located above the non-interconnection department, the basic goal objective will be reduced by selling dollars through requests from the BCRA. So these bids will be up to 150 million dollars a day, the largest amount considered in the cash scheme.
Within this framework, Copom explained its zone of exchange exchange exchange for its first season of 2019 with a daily renewal of 2% monthly level, from 3% previously. "We thought it was the duty of an effort to be much worse than the statements and that's why we set down a low slip," they said from the BCRA, and did not connect to it with appreciate its exchange rate.
Having noticed the BCR statement, before the market opened, International Monetary Fund supported the step. "Today's decisions … help reduce the inflation, and the IMF will continue to support the authorities as they do; performing the program. "Gerry Rice, chief finance spokesman, commented. "The new financial policy framework (…) is due to pay it, because the rate of inflation is expected and financial reduction has decreased", he said.
The market was expected to abandon the floor for a credit cost, which is expected to gradually decrease in grades from grades above 74% when the current scheme launched the BCRA, aimed at to & # 39; determining local market commitments.
The BCRA sources stated that the cash equality control scheme was extended at least until 2019. "If this continues to work, make sure everyone is calling to keep it ", they are predicting
Argentina still needs this scheme of cash collections, above all to gain weight gain. At Media, he explains that this scheme at very few times of confidence in the money, needs to be tighter by doing it; including pesos, and at a time of real confidence in money, there is scope to be more broad.