Argentina central bank likely to cut benchmark rate 'soon' - bank source

The South American country's inflation rate, at a world high annual level of over 275%, is expected to come in at around 10% monthly in March, government officials have said, lower than previous months and down from a peak of over 25% in December. Milei retweeted an article on X on Sunday suggesting a new rate cut was expected.

Argentina's central bank is set to lower the country's benchmark interest rate from its current level of 80% "soon", a source at the bank told Reuters on Tuesday asking not to be named, though the magnitude and exact timing of the cut was yet to be defined. The bank made a surprise rate cut in mid-March from a previous level of 100%, citing signs of inflation starting to cool and greater macroeconomic stability amid a tough austerity drive by new libertarian President Javier Milei.

The bank directors usually meet weekly on Thursdays to make monetary policy decisions, though these can come at any time. The South American country's inflation rate, at a world high annual level of over 275%, is expected to come in at around 10% monthly in March, government officials have said, lower than previous months and down from a peak of over 25% in December.

Milei retweeted an article on X on Sunday suggesting a new rate cut was expected. The central bank declined to comment. Since Milei took office in December, his government's tight fiscal policy has helped bolster foreign currency reserves, improve the fiscal balance, and propel markets, though economic activity has slid sharply and poverty levels are rising.