Monday , October 18 2021

What does the United States have raised interest rates and what has caused this decision in Argentina?


It was a good news, but it did not affect the United States, even where it happened, and in the rest of the world. The Federal Reserve Country (Fed) raised interest rates in a decision that shook markets.

Despite the fourth rise of the year, he is the president Donald Trump The idea is described as "silly" The FEDE made clear signs that these rates will moderate future growth rates, a reference to loans and credits.

In short, Such measures make improvements to United States deposit terms and investments in the world, especially in new markets (Like Argentina), to return to the square. Something is known clouds fly, or "return quality". In addition, the dollar is appreciated and other currencies are weakened. This is just as simple as complex countries with unstable economic and financial variables.

Specifically, the Fed's monetary policy committee (FOMC) unanimously decided to give what economists called "sharp leaps". rate rates rising by 0.25 points and 2.5% as a ceiling.

At the local level, consulted analysts Infobae In fact, they still talk about "bad influence" and they point to a downward trend in the future.

"Finally, the rate changed, a 64% chance could have occurred, even though the number of people and organizations that thought it was not happening at the December meeting in Fed was increased – the market, which is partially directed," he explained Gustavo Neffa, Research for Trader-i. "The agreement of the market, even more so, is that it is the only rise in October (although officially two words). But volatility is still too high, more than 25%, and everything can happen. You have to wait a few days for how to undo it, "he warned.

"On the one hand, it was discounted in the markets and the impact occurred, there will be no news, but still bad news goes up, which means that Fed absorbs dollars and There is a lower available liquidity in the global market and less public purchases of unexamined securities, for example, "he said. Fausto Spotorno, Ferreres & Asociados.

"In this sense, we are one of the most dangerous and vulnerable countries in the most vulnerable countries, perhaps with Turkey and others, but not very important, which is why there is a risk to the country too. The market is endangered and punished. At government level, the expected impact on the forecasts, and the opposite is much more than what can be done: go to MFI"he explained Infobae.

On the other hand, financial analysts Christian Buteler The news is not surprising. "It was expected, but the first reaction was also negative for the markets. The same thing happened, everything here is closed and real reactions will come tomorrow, surely. This puts a bit of noise on the market, but focuses on local problems that are not reacting to my concerns. We've finished less than% 2% and% 1. It was an effect, "he said.

Federico Furiase, Eco Go, is optimistic, although it believes that the market rate foreseen in the market has risen, Fed forecasts a 2019 and a 2020 slower increase.

"The next year, instead of three increases, there must be two, at the end of 2.9-3% and 3.1% at the end of the period, 3.4%. Now the projection rate of the FED is reconciled with the futures markets being discounted and the interest rate of zero percent interest"He determined and warned, in general, this is good news for both bonds and local exchange markets.

And also, according to Furias, the Central Bank can "stabilize the dollar and stabilize the hope of inflation with stabilized assets". The rate that the Fed makes more stringent in the cycle cycle is a country-risk wind, local bonds and the Argentine exchange market ".

"The range was discarded, but posts on Fed's space may be, the rest are innovations, this would be important to us. In the coming years there will be more liquidity and investors will not be so selective. There is also less turbulence and fear. The less, the better, "he says. Aldo Abram, Freedom and progress. "Considering the level of domestic activity, there could be more international financing possibilities, which we do not currently have, but rather for private investments and local financial assets", he explained.

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