Economics
Argentina Raises Key Rate To 47% as Inflation Hits 20-Year High
- Fourth rate hike this year as prices rose 6.7% m/m in March
- IMF agreement calls for real positive interest rates
The Central Bank of Argentina in Buenos Aires.
Photographer: Sarah Pabst/BloombergThis article is for subscribers only.
Argentina’s central bank raised interest rates for the fourth time this year after inflation data published earlier in the day showed prices increasing at the fastest monthly pace in 20 years.
The monetary authority increased its benchmark Leliq rate by 250 basis points to 47%, according to a statement distributed Wednesday evening. The rate hike also boosts the effective annual rate, which accounts for compounded interest, to 58.7%, putting it above current annual inflation of 55.1%.