July 25, 2014
Fábrega to cut rates if prices go down
During a lunch organized by the Inter American Council of Commerce and Production, local Central Bank president Juan Carlos Fábrega assured today that foreign reserve levels would stay at around 28 billion dollars by the end of this year, and revealed he would lower interest rates if prices rises continued to slow down.
According to Fábrega, if the downward trend in price rises continues at a level below two percent, “We will lower interest rates,” he affirmed.
Referring to national reserves level, the official estimated their amount would remain steady at around 28 billion dollars line, not far removed from the current 28.5 billion dollars that the Central Bank possesses today.
Fábrega assured at least 20 billion dollars will enter during the rest of the year, as result of the record cereal harvest and its subsequent sale.
The Central Bank head also revealed fixed term deposits with an interest rate of 31 percent grew 16,6 percent since last January, the month when 3.8 billion dollars (in reserves) leaked from that entity.
He was optimistic regarding the possibility of new foreign investments, followed the deal signed between the Government and Repsol over the nationalisation of YPF.
“The Repsol deal was resolved, and we can already see investments in the mining, oil and gas sectors.”