The board of Argentina’s Central Bank lowered the benchmark annual interest rate from 40% to 35% on Friday. The monetary authority also decreased the rate for repo transactions from 45% to 40%.

The Central Bank’s communiqué said the decision was based on the institution’s liquidity, the drop in inflation expectations, and the strengthening of the fiscal adjustment.

The monthly interest rate for fixed-term deposits was 3.3% and Friday’s decision put it at 2.9%. The relatively high interest rate, when compared with the 2% monthly devaluation of the Argentine peso compared to the U.S. dollar, allowed........

© Buenos Aires Herald