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Argentina Pivots to Monetary Easing as Central Bank Plans Remonetization After Election Gains

Economists warn that cheaper money alone will not restore long‑term lending.

Overview

  • The BCRA signaled a remonetization phase and said it will resume reserve purchases, marking a turn from pre‑election monetary restraint.
  • Officials are steering toward lower short‑term rates and increased liquidity, with one analyst reporting a partial rollover of peso debt and a planned five trillion‑peso injection on Friday.
  • Analysts caution that easing policy rates and adding liquidity will not by themselves revive mortgages or long‑term business credit without stronger confidence and clearer policy direction.
  • Following the coalition’s stronger showing in legislative elections, markets saw short‑term volatility as investors reset expectations.
  • Growth remains concentrated in agriculture and energy, while most productive sectors lag under previously high borrowing costs and weak purchasing power.