BCRA resumes Monetary Policy Report, outlines stabilization vision
The Central Bank of the Argentine Republic (BCRA) has resumed the quarterly publication of its Monetary Policy Report (IPOM) for the last quarter of 2025. The report outlines the BCRA's macroeconomic diagnosis, future prospects, and monetary policy decisions aimed at price stability.
Stabilization program corrects inherited imbalances
Since launching Phase 4 of its stabilization program, the Central Bank of the Argentine Republic (BCRA) has made sustained progress in correcting major inherited macroeconomic imbalances.
This program, unlike other stabilization experiences, achieved fiscal balance and eliminated monetary financing to the Treasury, all while complying with pre-existing contracts.
Further actions included correcting distortions in relative prices and consolidating the Central Bank's balance sheet.
These measures collectively contributed to reducing inflation and allowed for the liberalization of the exchange market.
The consistency of the adopted fiscal, monetary, and exchange rate policies has enabled the economy to converge towards its short-term equilibrium.
The prospect of structural reforms further reinforces expectations regarding the long-term sustainability of the economic framework.
The BCRA will continue to advance regulations that facilitate the efficient and prudent development of the currency competition regime, aligning with its institutional vision for transparency and communication.
Monetary aggregates guide economic nominal evolution
The BCRA has adopted a regime of control of monetary aggregates as an anchor for the nominal evolution of the economy.
This decision aligns with successful stabilization experiences in developing economies, considering Argentina's post-crisis and highly dollarized transition.
In this environment, transmission mechanisms for interest rates, exchange rates, and money quantity differ from steady-state economies.
Monetary policy will ensure the money supply closely accompanies the recovery of real money demand.
The BCRA prioritizes meeting money demand through foreign currency purchases during 2026 to accumulate international reserves.
This outlook contrasts significantly with the adverse conditions of 2024 and 2025, reflecting reduced conflicts between economic objectives.
Managing multiple economic policy objectives remains a challenge, but the BCRA's board will preserve price stability using all available monetary policy tools.