By Jorge Otaola
BUENOS AIRES, April 13 (Reuters) - Argentina's central
bank directors left the benchmark interest rate unchanged at 78%
on Thursday, keeping it off the formal agenda at the weekly
monetary policy meeting ahead of inflation data at the end of
the week, two bank sources told Reuters.
One of the sources, both of whom declined to be named, said
the central bank would look at inflation data for March and
could then consider a rate hike depending on if, and by how
much, the monthly price rise topped expectations of around 7%.
"There was nothing about rates in the board of directors
(meeting)," one of the sources told Reuters. The second source,
a central bank adviser, confirmed it had not been on the agenda,
but said a near-term hike remained possible with annual
inflation running at over 100%, one of the highest globally.
"An eventual rise could come at the meeting next week. It
will depend on how much higher than 7% is the CPI (Consumer
Price Index) for March," the adviser said. Analysts polled by
Reuters forecast a 7.1% increase for the month.
The central bank directors meet every Thursday, although
monetary policy decisions can be made at any time. Reuters
reported on Wednesday that central bank directors were mulling a
hike but could wait for inflation data before making a decision.
The benchmark 'Leliq' rate stands currently at 78% per year,
with market analysts and traders expecting a raise soon to 80%
to avoid the flight of pesos to dollars and temper inflation.
A trader at a commercial bank, who asked not to be
identified, added that if inflation continued to heat up, the
bank would have little choice but to hike rates further.
"If retail prices continue to climb, the central bank will
be cornered and will have to raise them as soon as possible,"
the person said.
(Reporting by Jorge Otaola; Editing by Adam Jourdan and Josie
Kao)
Messaging: adam.jourdan.thomsonreuters.com@reuters.net))
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