Days ago, the Central Bank ordered a sharp reduction in the monetary policy rate to 80% nominal annual rate (TNA). This measure caused the installment rates of some loans to also change.
Financing cost
Mariano Gorodischmarket and finance analyst, explained that, “As the cost of financing fell, they began to fall for SMEs, personal loans” and now “there is competition in the acquisition market”.
In that sense, the interviewee maintained that they are offering lower rates “to pay in up to 6 installments with a rate of 68%“, that is to say, “cheaper than Cuota Simple”. And he added: “With the slowdown in inflation, these options began to exist with specific cards from some banks for selected items.”.
Inflation and monetary policy
For Gorodischthe Government is projecting that, starting in May, inflation will slow down even more and that “go to single digit levels”. And he continued: “By continuing to lower the monetary policy rate, banks are going to lower the fixed-term rate again”.
Besides, “lowering monetary policy is a way to liquidate liabilities” and of “reduce the deficit”, said the interviewee. And he continued: “It is good news because financing is becoming cheaper and banks are going to come out to promote collateral loans.”.
Pledge loans
When asked about collateral loans, Gorodisch explained that, “they will be a relief” because discounts and promotions will begin in the automotive industry. “Now sales are very low”he added.
Regarding what could happen in the coming months, the analyst mentioned that Morgan Stanley, one of the most important investment banks in the world, predicted that next year “inflation in Argentina will drop from 200% to 31%.” And he finished: “Now is the time to start thinking about mortgage loans.”.