Buenos Aires, November 20 (NA) -- The Central Bank made a new cut to its reference interest rate, from 22% to 20%, leading to a widespread drop in the yields of financial assets that arbitrate against it.
This rate is what the monetary authority pays when banks borrow money from it or deposit their excess daily funds.
According to market operators and as reported by the Argentine News Agency, the so-called "Repo" rate between banks stands at 22%, while the collateral rate falls to 18%.
This new cut will impact the yields of fixed-term deposits, so a downward adjustment is expected in the coming hours.
The decision was made just before the details of a new tender for the renewal of peso debt maturities, to be held next Wednesday, were announced.
According to data collected by the Argentine News Agency, the amount to be refinanced is 14.5 trillion pesos, but in recent days the Treasury and the Central Bank have carried out a series of prior swaps that will reduce that amount.
