BUENOS AIRES, Sept 13 Argentina's central bank
cut its 35-day reference rate by 50 basis points on Tuesday, the
seventh cut in as many weeks as policymakers try to revive the
local economy amid signs of lower inflation.
The bank cut the rate to 27.25 percent, a move aimed at
pushing cash into the real economy by making short-term central
bank notes less attractive to investors. The tactic helps gross
domestic product grow but can also be inflationary.
"The monetary authority will continue proceeding cautiously,
looking for the disinflation process observed in recent months
to continue over time," the central bank said in a statement.
Analysts in a central bank poll expect inflation of 41
percent this year and 19.8 percent in 2017. They see gross
domestic product shrinking 1.5 percent this year before
rebounding to 3.2 percent growth in 2017.
Earlier on Tuesday the state statistics agency Indec said
the inflation rate was 0.2 percent in greater Buenos Aires in
August, marking a steep decline over the previous three months.
Macri ordered a reform of Indec to make Argentine statistics
more credible after many accused his predecessor of sugar
(Reporting By Walter Bianchi; Editing by David Gregorio)