Economics
Not Even 50% Inflation Will Make Argentina Boost Interest Rates
- Central bank rules out boosting rates despite inflation spike
- Officials concerned with sluggish private lending growth
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Argentina’s central bank is ruling out increasing interest rates for the foreseeable future even as currency pressures mount and annual inflation climbs above 50%.
The country’s monetary authority is prepared to keep holding its key rate for months to come, according to people with direct knowledge of the matter. The central bank, know as BCRA, is betting that inflation will slow in the remainder of the year and is optimistic that international reserves will continue to grow, said the people, declining to be named discussing internal policy.