Economics
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.
Photographer: Sarah Pabst/BloombergThis article is for subscribers only.
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%.