BUENOS AIRES, April 24 (Reuters) - Argentina’s central bank held its benchmark interest rate at 27.25 percent on Tuesday, reiterating in a statement that high-frequency indicators suggested core inflation would remain high in April, but below March levels.
The bank said that inflation would begin to fall in May after a series of hikes in regulated prices end this month. It said several factors, including salary negotiations, supported the bank’s target of 15 percent inflation this year.
The statement said if inflation fell slower than expected in coming months the bank would raise its policy rate.
Consumer prices in Argentina rose 2.3 percent in March, slightly down from the 2.4 percent increase in February. Twelve-month inflation was 25.4 percent, the same level as February.
The bank said in its twice-monthly policy statement it did not expect significant depreciation of the peso currency in the coming months, after it sold over $2 billion in reserves this year to halt the peso’s slide. (Reporting by Caroline Stauffer Editing by James Dalgleish)