Banco Central de la República Argentina on Dec. 26 maintained its monetary policy rate at 28.75% as it continues to minimize the impact of inflation.
In a statement, the central bank said the evolution of core inflation "has been favorable in recent months" but it still needed to maintain current rates to curb the impact of the increases in regulated prices, "in order to continue the inflationary downward trend."
The regulator, which in November raised the benchmark rate by 100 basis points seeking to curb inflation, said high-frequency indicators show a lower level of inflation in December.
"The monetary authority considers that the current bias of monetary policy is adequate to minimize the impact of the increases in regulated prices that are taking place in order to continue the inflationary downward trend," Banco Central de la República Argentina noted.
The central bank has not yet achieved its inflation target of 12% to 17% for 2017, putting next year's target of 8% to 12% under pressure.
