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Argentina Boosts Key Rate to 60% as Inflation Soars Toward 70%

  • Central bank move marks the largest rate hike in three years
  • IMF deal calls for Argentina to keep key rate above inflation
The Central Bank of Argentina in Buenos Aires, Argentina, on Friday, Feb. 25, 2022. 

The Central Bank of Argentina in Buenos Aires, Argentina, on Friday, Feb. 25, 2022. 

Photographer: Sarah Pabst/Bloomberg
Updated on

Argentina’s central bank delivered an outsize 800 basis-point hike to its benchmark interest rate, the largest in three years, as inflation accelerates amid a growing political crisis. 

The monetary authority increased its benchmark Leliq rate to 60%, it said in a statement on Thursday. The effective annual rate, which accounts for compounded interest, reached 79.8%.