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Decisions Taken by the Monetary Policy Council (COPOM)

June 3, 2019. The Monetary Policy Council of the BCRA (COPOM) has decided to keep the monetary scheme specifications unchanged in June.

The BCRA complied with its MB target for the eighth month in a row. The current target—in place until the end of the year—stands at ARS1,343.2 billion (adjustable based on BCRA’s interventions in the forex market, and December’s seasonal rise). May’s MB average amounted to ARS1,343.6 billion standing slightly below the target.

The COPOM ratifies the minimum rate that will remain at 62.5% for LELIQ auctions in June. In other words, it will absorb the necessary liquidity so that the benchmark interest rate may float endogenously above such level.

Likewise, the limits of the foreign exchange benchmark zone have remained stable, 39.755 and 51.448 ARS/USD until December 31, 2019. Furthermore, the intervention policy announced on April 29 remains unchanged.

The inflation rate started to decline in April and throughout May but still stands at high levels. Foreign exchange volatility dropped dramatically in May.

The COPOM considers that tight controls on monetary aggregates imposed by the BCRA will continue leading the disinflation process for the coming months.

The measures described here have been adopted with the unanimous approval of all COPOM members. The COPOM is composed of Guido Sandleris, Governor; Gustavo Cañonero, Deputy Governor; Verónica Rappoport, Alternate Deputy Governor; Enrique Szewach, member of the Board appointed by the Board of this Central Bank; and Mauro Alessandro, Economic Research Deputy General Manager.

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