Call Money Interest Rate Determinants in Argentina

Authors

  • Alejandra Anastasi Central Bank of Argentina
  • Máximo Sangiácomo Central Bank of Argentina
  • Pedro Elosegui Central Bank of Argentina

Keywords:

Interest Rate, Monetary Policy, Short-Term Liquidity Markets

Abstract

This paper analyzes the determinants of the interest rate of the interbank market for short-term unsecured loans (call) in Argentina. The results indicate that the heterogeneity of entities, both in size and origin of capital, influences the interest rate agreed upon in the operation. Additional aspects such as the link between entities, the degree of concentration in supply or demand, also affect the cost of resources. The market structure is relevant, as is the active repo rate set by the BCRA. Finally, the rate reacts positively when banks have a greater demand for liquidity, both due to seasonal issues and episodes of deposit reduction.

JEL classification: E43 ; E58 ; G14 ; G21

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Published

2010-06-01

How to Cite

Anastasi, A., Sangiácomo, M. and Elosegui, P. (2010) “Call Money Interest Rate Determinants in Argentina”, Ensayos Económicos, (57, 58), pp. 95–126. available at: https://investigacionesconomicas.bcra.gob.ar/ensayos_economicos_bcra/article/view/305 (accessed: 1 May 2025).

Issue

No. 57, 58 (2010): Ensayos Económicos

Section

Articles