Argentina Announces Second Surprise Rate Hike in Less Than a Week
- The 300 basis point hike follows an equivalent hike Friday
- Argentina spent almost 10% of forex reserves to support peso
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Argentina hiked interest rates for the second time in less than a week to stem the peso’s sharp decline, a tactic that many investors say will again bring only temporary relief.
The central bank raised its key interest rate to 33.25 percent, the central bank’s press office said on Thursday. The peso has fallen more than 5 percent since Friday, when the bank raised borrowing costs by the same amount at a surprise meeting.