Economics
Argentina Set to Raise Key Rate to 42.5% Thursday, Official Says
- Central bank increased monetary policy rate 250 basis points
- It’s the second rate hike in 2022 as IMF calls for real rates
The Central Bank of Argentina in Buenos Aires, Argentina.
Photographer: Erica Canepa/BloombergThis article is for subscribers only.
Argentina’s central bank raised its benchmark interest rate by 250 basis points to 42.5% on Thursday, further tightening monetary policy to align with goals set out in the government’s talks with the International Monetary Fund.
The increase marks its second rate hike this year, according to a central bank statement. IMF staff have called for interest rates in Argentina to exceed annual inflation running at 51% as part of a pending program to reschedule the government’s $40 billion of outstanding debt with the IMF.