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Argentina central bank cuts interest rate to 29%, from 32%

BY Reuters | ECONOMIC | 06:58 PM EST

BUENOS AIRES, Jan 30 (Reuters) - Argentina's central bank cut its benchmark interest rate by 300 basis points to settle at 29%, it announced in a statement on Thursday, as inflation continues its downward path in South America's No. 2 economy.

Traders expected a cut, as the rate of rising consumer prices falls and the monetary authority is set to slow the monthly pace of devaluation of the local peso currency.

Starting next week, the regular devaluation, known as the crawling peg, will

slow to 1% a month

from 2% a month previously.

Over the past year, Argentina's inflation rate has slid sharply from double-digit increases since President Javier Milei took office in late 2023.

December's monthly inflation rate came in at just 2.7%, while last year's annual price growth slowed to about 118%. (Reporting by Walter Bianchi; Editing by Brendan O'Boyle)

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