Economics
Argentina Boosts Upper Bound for Key Rate to 70% in Note Sale
- Sale comes after minister, investors discussed need for hike
- Argentina’s key monetary policy rate trails annual inflation
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Argentina raised by 600 basis points the rate on the short-term local note it uses to mark the ceiling of the benchmark monetary policy rate.
In an auction held Wednesday, the Economy Ministry sold Lede discount notes due Oct. 31 at an annual nominal rate of 70%, according to an emailed statement. That marks a 600 basis-point increase from the notes’ 64% yield in secondary markets earlier in the day. The ministry raised 516 billion pesos ($3.9 billion) in the sale, which included other instruments, more than it needed to make its July maturities.