BUENOS AIRES, July 22 (Xinhua) -- Argentina's central bank (BCRA) on Monday announced several monetary policy changes, including setting a minimum rate of 58 percent for the benchmark interest rate.
The contractionary monetary policy aims to rein in inflation, the bank said in a statement, and will remain in place until new inflation figures are released after the electoral primaries in August.
"To guarantee the contractionary nature of monetary policy, the Copom (monetary policy committee) has decided to keep the minimum rate of the Liquidity Notes (Leliq) at 58 percent until the next inflation figure," said the bank.
The rate may then be modified depending on "projected inflation, internal and external financial conditions and other macroeconomic variables," the bank said.
New inflation statistics should be available by Aug. 15, following the Aug. 11 primaries in the lead up to general elections in October.
President Mauricio Macri's government hopes the high interest rate will help curb inflation and avoid capital flight.
The International Monetary Fund (IMF), which recently made history by loaning Argentina nearly 60 billion U.S. dollars to calm its crisis-hit economy, on Monday said it approved of the bank's new measures.
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