The head of the Central Bank stated: "What's coming is an interest rate cut that will reactivate credit". The keys to economic policy are to lower inflation, accumulate reserves, and promote growth. According to Furiase, after the removal of currency controls in April, "the absolute priority" was to lower inflation and break the 2% monthly floor mid-year, which is why the Central Bank "did not go out to buy dollars within the band". "We managed to decouple the disinflation process from the rise in the dollar and the country risk, precisely by having fiscal order," he explained. This Wednesday, it was learned that October inflation was 2.3% monthly versus 2.1% in September. Furiase recalled that interest rates are set by the market, but he emphasized that, once the political noise dissipated, "they plummeted". "With an orderly macroeconomy, as a result of what has been done and the recovery in money demand we are going to have, we will generate the space to be able to buy dollars. This is the result of a virtuous process, because the macroeconomic spaces were being generated to make a dollar purchase in the context of a recovery in money demand, without straining inflation or the exchange rate within the band float regime, and without the need for sterilization," he noted. The period after the elections will include a sharp drop in interest rates and a reactivation of credit, predicted today the head of the Central Bank Federico Furiase, a close ally of Minister of Economy Luis Caputo. "With more political and social support, this rate cut will generate more credit recovery," he highlighted. He said there could be "more credit for families and businesses, because there is an orderly macroeconomy, there are no more remunerated liabilities at the Central Bank. In addition, it is independent of the dollar payment maturities we have next year," he pointed out. The official explained that the strengthening of the Central Bank's balance will be independent of the millions of dollars Argentina will have to disburse to pay various multilateral credit organizations and investors, because the country has the support of the United States, the swap with China, and the drop in country risk, which will allow it to "explore" tools to make repurchase or refinancing operations. "This strategy will allow us to face the 2026 maturities," affirmed Furiase, who was in charge of closing the event organized by the Argentine Institute of Business Executives (IAEF), which took place this Thursday at the Yacht Club of Puerto Madero.
