Argentina leaves reference rate unchanged for third week

martes 26 de julio de 2016 19:12 GYT
 

BUENOS AIRES, July 26 (Reuters) - Argentina's central bank left its 35-day reference interest rate unchanged at 30.25 percent on Tuesday for the third straight week, though it said all indicators showed inflation cooling.

Up until July 12, the central bank had slashed the reference rate every week for more than two months, signaling confidence that inflation was slowing down and helping make concrete investments more attractive in the recession-mired country.

However, the central bank has held the rate steady since then.

"With respect to the month of July, all of the indicators and estimates from state sources that the bank follows show a decline in inflation with respect to June, although at different velocities depending on the index," the bank said in a statement.

"Taking all into account, the bank considers that in these circumstances, the current interest rate level is appropriate to consolidate disinflation."

National statistics agency Indec has yet to report an annual inflation rate since the agency underwent reforms earlier this year, though authorities have produced monthly figures.

In its statement, the central bank said June inflation in the San Luis province was a relatively low 1.5 percent, affected heavily by reversions in regulated price hikes. The central bank estimated the monthly national inflation rate at a higher 2.6 percent, based on data from Cordoba, Buenos Aires, and San Luis provinces. (Reporting by Jorge Otaola and Gram Slattery; Editing by Jeffrey Hodgson)