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The minimum of unlisted rates is in Sandler's era

The current account rate declined to 59.59%. The reduction was transferred to the check discount on the stock exchange and with less power on personal loans

The rates that accelerated the central bank this week gradually began to move the general public. Over the past three days, the monetary body made an average of 56.60% to 54.89% of the Leliqs rate, and motivated the banks to cut the 171 percentage point interest they charged on their current account. an average of 59.59% per annum, the lowest level since the end of August last year.

The day-to-day BCRA liquidity letter is a monetary policy rate that also serves as a reference to the financial system. As a result of the upward or downward movement of this rate, the shortest credit lines are the most dynamic changes.

In fact, the interest in the current account was a strong leap from September to October, first when the central president, Louis Toto Caputo, took the rate up to 60% and later, when Guido Sandler was struggling. money rates up to 73% per year. Thus, the costs paid by companies to cover their uncovered funds from their current accounts exceeded 78% per annum.

Now, according to the BCRA average, the rate is 59.59%, the lowest level since August 30, when it was 47.2%. It should be noted that this figure is the annual nominal rate (TNA), as the total financial cost (CFT) is approximately 76%. Of course, this figure reached more than 100% annually among the hard monetary adjustments.

Settlement Account Advance, known as "open", is the line most used by small and medium businesses to finance their daily money. With rising stakes, stocks of these loans fell by $ 29,781 million during the first three-month money correction, and are still stable in January.

Central game

One of the key factors that accelerated the rate drop this week was the change made by the Monetary Agency in the way Leliqs announced a call every day. Strictly speaking, at the beginning of each round it reports an indicative amount and then actually assigns that figure. No more weight or less weight. In contrast, on the other hand, it ended up with more money than indicated, and the drop in rates was very different.

What does this change mean and how does it affect the bet? Basically because banks are now offering lower rates for fear of leaving this court and not making them pay their pesos. "BCRA modified the pricing method. Now they announce the amount, and as the banks do not want to stay outside, the rate decreases endogenously faster," explains Santiago López Alfaro, partner of Delphos Investment..

If this impact first affected the call market, loans between one-day banks, the financial system's liquidity thermometer. On Friday, the average was 53.21%, but yesterday it was around 46%.

What prompted the monetary agency to speed up the rate cut was the dollar's downward trend, which, until Monday this week, was increasingly coming from the non-intervention area, and did not even react to BCRA purchases. Within a week, with Leliqs auctions, it injected just under 79,000 million pesos and remained in the Monetary Base's zero growth target to close another month with compliance.

Thus, with more pesos in the market and with lower profit margins, the dollar did not take a long time to react.

At the same time, the rate paid by SMEs for discount checks on the Buenos Aires Stock Exchange was also linked to a central trend. According to the Daily Securities Market Report of Argentina, where these instruments are used, the discount rate of 30 days guaranteed yesterday was approximately 43.26% per annum and 43.10 – 60 days at a low of more than one percentage point from the previous week.

According to families, some of the decline in interest rates began to be transferred to the cost of personal loans, albeit in a much worse way. According to the latest BCRA data, as of January 29, the average of these loans was 63.2%, almost at the same level as in the previous days, but almost two points below what they charged 10 days ago.

"On lines like personal loans, we have to wait until the rate cut is reduced before it is passed on to customers. He is always sensitive to change, but not as sensitive as in the short term," they explain from a private bank.

While it is down

In the city they believe that the decline in rates will continue in the short term, but not as aggressively as it was this week. "We need to check how the impact of tariffs and transport on inflation is increasing. It is still unclear whether it will go down," says the head of the local bank table. "That's what will determine that the decline in rates will last for a long time," he adds. .

The external context seems to support local assets. Although it was almost discounted that the Federal Reserve did not change the rate yesterday, its approval gave a new impulse to equities and peso bonds. This puts downward pressure on the dollar and can give the monetary agency more air to further lower the rate without fear of affecting the exchange rate.

To be so, and although the rates are very high, the cuts of this week began to be passed on to families and businesses, which is something important for the industry to start raising its head.

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