Argentina's Minister of Economy, Luis Caputo, stated on Monday that he feels 'comfortable with any dollar price within the band' and predicted that inflation could fall below 1% in 2026. He emphasized that people need predictability and that the government is providing this through the established exchange rate band. Caputo explained that if the dollar reaches the band's ceiling, it will not go beyond it. 'So you can sleep soundly, nothing will happen with the dollar,' he said. The minister also noted that there has been a 'significant shift' since the elections, and the economic stagnation was a 'result of the kuka risk.' He believes the elections were 'spectacular backing' and that an immediate economic recovery will be visible in the fourth quarter. Caputo announced that the 2026 budget bill will be sent to Congress soon, an uncommon step in many countries. 'To lower taxes, we need the country to grow,' he stressed. Regarding labor legislation, the minister spoke of the need to increase the level of economic formalization. 'We are sending the labor reform, whose guidelines are already known. If the tax base grows, we will all have many more resources to lower taxes,' he pointed out. Caputo also mentioned a new regime for creating jobs that will be 'very advantageous for employers when hiring people.' On the social front, he expressed his hope for a 'more rational Peronism' and that the alternative in 2027 would not be 'more capitalism or communism.' He believes this dichotomy exposes the country to a volatile scenario. In foreign trade, the minister revealed details of the agreement Argentina will seal with the United States. He called the pact 'very beneficial for both countries and, definitely, for ours.'
