This Thursday, the Board of Directors of the Central Bank of the Argentine Republic (BCRA) decided to maintain the Annual Nominal Rate (TNA), leaving the rate for fixed terms at 118%. In this way, the monthly rate would be 9.83% and the annual effective rate would be 209.4%.
The decision of the monetary authority was known after the inflation data for August, which rose to 12.4%.
On August 14, after the announcement of the new official exchange rate at $365 until October, the Central Bank raised the interest rate 118% “in line with the recalibration of the level of the official exchange rate”.
Inflation in September would be even higher than in August: what do economists project?
How much do you get with an investment of $100,000?
With the current interest rate, If a fixed term of $100,000 is agreed for 30 days, at the end of the term you will receive $109,830that is, the $100,000 that he had initially deposited plus interest of $9,830.
If at the end of that period, it is decided to create a new fixed term for 30 days, would obtain $120,626 at the end of the term, which translates into the $109,830 deposited at the beginning of the month, to which is added an interest of $10,796.
In the event that this interest rate is maintained during the next few months and if at each maturity the person returns to make a new fixed term for 30 days with the initial capital and the interest earned, In 12 months I would have $309,400. This results from the $100,000 initially deposited plus interest of $209,400.
How much do you get with an investment of $200,000?
In the case of establish a fixed term of $200,000 for 30 days, At the end of that period, $219,660 is obtained, which results from the sum of the initial capital plus $19,660 obtained from the monthly interest of 9.83%.
If monthly renewals were made with the same current interest rate, a balance of $616,142 would be obtained.
Monetary policy of the Central Bank
The Board of Directors of the Central Bank of the Argentine Republic (BCRA) decided to keep the monetary policy rate unchanged at 118% (209% in effective annual terms, TEA).
“The interest rate policy of the Central Bank seeks to promote positive real returns on investments in local currency, in order to preserve monetary and exchange stability,” indicated the Board of Directors of the Central Bank.
The entity “will continue to monitor the evolution of the general price level, the dynamics of the exchange market and monetary aggregates for the purposes of calibrating its interest rate and liquidity management policy,” it said in a statement.
LM / Give