Inflation is falling, reserves are rising and Argentina is entering a new phase of reform. Rates are now market-set, capital controls remain relaxed and a quiet push is underway to lure hidden savings back onshore. If momentum holds, Milei may not just steady the ship – he might actually start to turn it around.
Monetary Policy
Argentina has officially entered a new phase of monetary management. The Central Bank cut rates again in early June, but this time with a twist. It also abandoned the fixed benchmark rate altogether. From now on, rates will be set by the market within a monetary aggregate framework. The policy pivot reflects growing confidence in the disinflation path – and a desire to give markets a greater role in price discovery (see our April report).
The move was announced just days before the Banco Central de la República Argentina (BCRA) launched a USD2 billion repo facility with international banks – a pre-emptive step to bulk up reserves ahead of the next IMF review. T...
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