Wink at Sandleris: the Fund is in favor of lowering the rate

The government I'll be in a week under lower interest rate conditions, when he receives the market expectations collected by the BCRA.

It has the IMF downline to drill the 60% rate, but understands that it can only do so if the market supports the new reference.

"In theory, the 60% rate could already be lowered. This week or the next can be downloaded", an official source told El Cronista, referring to the date on which the authorities will receive the Central Bank Market Expectations (MER) Survey (BCRA), which will be announced on December 4 and which should second consecutive decline in inflation expectations.

"We will have to see if the market agrees, but theoretically we can"added the source.

The BCRA has already managed to lower benchmark interest rates from over 73% in early October to 61.2% yesterday. But the volatility of the exchange rate in recent days has led the BCRA to commit to absorb any excess liquidity that may exist, which may require high rates again.

On the other hand, yesterday The president of the Central, Guido Sandleris, has planned to expand the monetary base at "a rate consistent with the growth of the demand for money".

He added: "In the future, the money market may require higher or lower interest rates to achieve our monetary base goal. "

The lowering rates is a measure expected by the private sectorbecause the high cost of financing stifles activity.

"The BCRA will decide according to market conditions, but the IMF is already able to do it, "they explained.

International Monetary Fund officials Ricardo Cardarelli, Alejandro Werner and Trevor Alleyne spent nearly two hours yesterday meeting with Miguel Braun, Deputy Minister of Finance, at the Alvear Hotel, in parallel with the meeting with representatives of the International Monetary Fund. investors and politicians inaugurated by Nicolas Dujovne.

To the output, The chronicler I asked Cardarelli if he agreed that the interest rate should be lowered. "Of course I agree," he says.. The government has pledged to the IMF to keep short-term rates above 60% per annum until the one-year forecast drops two months in a row. In October, they went from 30.1% to 29.4%.

In the government, they are already observing that property inflation in November is less than 2%. But adding higher prices for services, inflation would be around 3%. For December, inflation below 3% is expected.

A drop in the price of fuel could contribute to the decline in inflation. Dujovne met with the president of the YPF, Miguel Ángel Gutiérrez. But he told reporters that he had not addressed the issue.

"Argentina has price freedom. The last moves were different from those of YPF in the competition according to the position they wanted to have downstream and upstream, "said Dujovne