Central Banks
Argentina Hikes Key Rate to Record High to Halt Peso Slump
- Central bank raised rates by 10 percentage points to 91%
- Second hike in two weeks as government vows to use all tools
A money changer holds two US hundred dollar bank notes and the equivalent in 1000 peso.
Photographer: Sarah Pabst/BloombergThis article is for subscribers only.
Argentina’s central bank raised its benchmark interest rate by 10 percentage points on Thursday as a renewed peso selloff in parallel markets adds to the sense of crisis in the South American nation.
The board boosted its key Leliq rate to 91%, the bank said in an emailed statement Thursday, the highest in at least five years. The bank said its decision is aimed at seeking real positive returns on local currency investments and preserving monetary and financial stability. The Argentine Economy Ministry first announced its intention to increase the rate in a statement sent by message.