Argentina’s central bank said it would switch its benchmark interest rate to the overnight reverse repo rate of 100% from the previous 28-day Leliq rate at 133%, a move aimed at simplifying monetary policy amid an economic crisis.
The move comes days after libertarian President Javier Milei took office. Economist Santiago Bausili took over the presidency of the central bank, which Milei has pledged to eventually shut down.
The bank added that it considered it “prudent” to maintain a minimum 110% interest rate for fixed-term deposits. In terms of liquidity injections, the bank said it would continue to carry out certain operations on Treasury instruments which the bank considers appropriate.