Argentina targets inflation of 8-12 pc for 2018

Argentina targets inflation of 8-12 pc for 2018

International Business News

BUENOS AIRES: Argentina’s central bank will target inflation of 8 percent to 12 percent in 2018, down from a
12 percent to 17 percent target in 2017, central bank chief Federico Sturzenegger said on Monday (international business news).
Inflation should fall to around 5 percent in 2019, he said in a presentation to explain the bank’s inflation
targeting strategy for next year.

Although some analysts had expected the bank to move to a monthly policy rate like most central banks around
the world in 2017, Sturzenegger said Argentina would continue to set its policy rate once a week.

The reference rate will change from 35 days currently to 7 days, however, and will no longer be associated
with the auction of short-term Lebac debt notes.

“This will give greater stability to reference rate prices,” Sturzenegger said.

The bank will auction off Lebac on the third Wednesday of every month rather than every week, he said.

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