Central Banks

Argentina Cuts Rates to 80% in Surprise Move as Inflation Cools

  • Monetary authority cuts benchmark rate to 80% from 100%
  • Officials cite stable peso, cooling monthly inflation

The Central Bank of Argentina in Buenos Aires.

Photographer: Erica Canepa/Bloomberg
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Argentina’s central bank unexpectedly cut its benchmark interest rate to 80% from 100% as policymakers see monthly inflation cooling while the peso continues to strengthen against the US dollar in parallel markets.

Despite annual inflation over 250%, the monetary authority cited a range of factors in explaining the cut late Monday night, including its steady rebuilding of reserves.