LatinNews Daily - 06 March 2020

*Argentina’s central bank (BCRA) has announced that it has cut its benchmark interest rate by two percentage points to 38%. This is the eighth time that BCRA has slashed interest rates since December 2019 as part of its efforts to reduce sky-high interest rates in support of trying to stimulate domestic economic activity. Interest rates had previously been pushed up by BCRA in a bid to contain runaway domestic inflation. While the inflation rate remains high (running at around 50% annually), a BCRA statement said that the latest decision to cut rates owed to “signs of consolidation of a deflationary process and with a view to generate conditions to favour a recovery in economic activity”. However, the statement warns that there is currently “no firm evidence” that the economy is emerging from the current recession which began in 2018. 

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