BUENOS AIRES (Reuters)

Argentina’s central bank cut its benchmark interest rate by 300 basis points to settle at 29%, as inflation continues its downward trend in South America’s No. 2 economy.

Traders anticipated this cut as consumer price rises slow and the monetary authority prepares to reduce the monthly pace of peso devaluation.

Starting next week, the regular devaluation, termed the crawling peg, will slow to 1% a month from the previous 2% per month.

Over the past year, Argentina’s inflation rate has significantly decreased from double-digit increases since President Javier Milei assumed office in late 2023.

December’s monthly inflation rate was recorded at just 2.7%, while the annual price growth for last year slowed to approximately 118%.