The Central Bank decided this Thursday to undertake the second consecutive cut in the economy's reference rate. The decision was anticipated by lower inflation data, which will be known tomorrow.
Banks do not have a minimum floor for fixed-term loans, so the loan rate could fall further. In addition to the reduction in rates, the organization decided to make access to the Free Exchange Market more flexible for MSMEs. The organization announced the normalization of liquidity management through reserve requirements and the deactivation of the swap with the Bank for International Settlements (BIS) The Central Bank reported that it managed to accumulate US$8.7 billion since December 10, the day it announced the cut in interest rates. The move is similar to the one the organization faced last month, when it surprised the market in mid-wheel with a cut of 1,000 basis points in the yield of the repos. It is not an isolated decision; the Central Bank is considering other flexibilities and modifications on the exchange front.