The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
BANKING

Argentina: CB governor Martin Redrado says ability to control inflation is limited

Focus should be on monetary and wage policy, says Redrado.

Leading experts on the Argentine economy disagree with the governor of the country’s central bank, Martin Redrado, when he says that the institution has only a limited role to play in fighting inflation in the country because of the low level of credit.

According to the state body in charge of measuring inflation, Indec, the rate is 9.6% (although leading local economists say the true figure is around 15%).

In an exclusive interview with Euromoney, Redrado says that total credit against GDP in the country is only 10%, while before Argentina’s economic crisis of 2001 it was 25%.

He says: "This means that there is 90 per cent [of the economy] where it is very difficult [to fight inflation]; you don’t have all the levers to control it. Therefore, in our analysis, there should be a combination of a monetary and a wage policy, targeting a primary fiscal surplus of 5.5% of GDP. Argentina now has a non-financial primary fiscal surplus of 3.5%.

"In an economy in transition – where prices have been going up in natural gas and transportation, for example – there has been a delayed pass-through of prices after the devaluation.

"I am not the governor of the Bank of England, Mervyn King; I don’t have the depth of credit that he has.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree