Argentina cuts rates, but keeps focus on inflation
Analysts express concerns over decision, as inflation remains high
The Central Bank of Argentina (BCRA) cut rates on January 9 by a smaller margin than markets expected, as it attempts to retain its independence to fight inflation while the government focuses on growth.
The central bank reduced the key seven-day repurchase rate by 75 basis points to 28%, while markets had anticipated a bigger cut of 125bp. Expectations for a looser policy came after the government decided to lift the inflation target on December 28.
The new inflation target for 2018 is 15%
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