Since the arrival of President Javier Milei, there have been a total of five adjustments to interest rates. The latest adjustment was made in March, bringing the annual nominal reference rate down to 50%, which is the lowest it has been since Milei joined the government. This decrease has had an impact on fixed deadlines, among other factors.
The monetary authority has lowered interest rates a total of five times since December when Bausili took office. In March, another cut was made, bringing it down to 80%. It was then set at 70% before being adjusted to its current level of 50%. The most significant change occurred in March when the minimum performance for fixed terms was eliminated, allowing banks to offer any rate they want.
Since the reference rate is currently at 60%, entities are offering an annual nominal return of around 50%. However, as the reference rate continues to decline, these percentages are expected to fall further. The banks listed in the rate comparator range from 37% to 51%, with variations in monthly returns based on the chosen entity.
Interest rates have moved into negative territory in real terms since President Milei took office, offering returns that do not match inflation. The Central Bank’s goal is to reduce rates and normalize bank reserve requirements in order to absorb liquidity surpluses and correct imbalances in the financial system.
The strategy aims to accelerate liquidity and change economic logic by forcing banks to migrate pesos lent to the Central Bank into debt placements by the Treasury and encouraging them to reduce lending rates and focus on their traditional business of lending