In accordance with section 42 of the Central Bank´s Charter: ´Prior to the beginning of each financial year, the Bank shall publish its objectives and plans regarding the implementation of the monetary, financial, lending and foreign exchange policies. Should significant changes in its objectives and plans occur, the Bank shall be required to disclose the underlying causes and the steps accordingly taken´.
Pursuant to section 3 of its Charter the main purpose of the Central Bank is to look after Argentina's economy monetary stability. This implies focusing, in the current context, on a reduction in the inflation rate to fulfill inflation targets between 12% and 17% for 2017, between 8% and 12% for 2018 and 5% for 2019.
Secondly, to ensure the financial sector's stability and growth is also a priority for the Central Bank as the best way to contribute to its ultimate target of its task: economic development with social equity. The Central Bank shall strive for the development of the financial system and the promotion of such saving instruments in domestic currency that safeguard saving in pesos by Argentine people. These measures will cause the credit system to become sounder, which will contribute towards leveraging productive development and expanding mortgage credit supply at more affordable rates and more flexible terms for the entire population.
The third pillar of the Central Bank’s monetary policy consists in promoting the access to bank services making it easier for electronic currency to be used as a means of payment. In this regard, the Central Bank follows the international trend towards electronic means of payment, which is certainly high in its agenda. The increasing massive use of electronic means of payment is tantamount to hindering organized crime, drug trafficking and money laundering. The access to bank services also contributes towards formal labor markets, which allows to charge a more even and moderate tax burden. In turn, electronic money, as a banking liability, is channeled through the financial system to lending, a critical step for financial inclusion.
On the basis of these guidelines, the Central Bank announces the objectives and plans for the following year in accordance with section 42 of its Charter.