Argentina’s Central Bank raised its benchmark interest rate to 97% in an effort to combat inflation. The move comes as Argentina is facing its highest inflation rate in decades.
The Argentine Central Bank (BCRA) raised its benchmark interest rate by 600 basis points to 97% on Monday, May 15th, in an effort to combat inflation.
The move comes as Argentina is facing its highest inflation rate in decades. Inflation hit 109% on an annual basis in April and is expected to remain elevated in the coming months.
Argentina Reference Interest Rate: BCRA. Source: CEIC Data
The BCRA’s interest rate hike is a significant escalation of its efforts to control inflation. The central bank has already raised rates several times this year, but to little avail.
The BCRA’s interest rate hike is a sign the government felt compelled to control inflation. However, it is unclear whether the hike will be enough to bring inflation under control, but all fingers are crossed that the result comes out positive.
