Argentina Central Bank Raises Interest Rates To 97% To Curb Inflation Crisis: Report

Key Points:

• Argentina Central Bank raised interest rates to 97% to combat inflation amidst economic uncertainty.
• The government plans to obtain international support for its dwindling foreign reserves through deals with the IMF, China, and Brazil.
• The Argentinian consumer price index rose to 102.5% in February, the highest since 1991, prompting the Central Bank to take action.

Argentina Central Bank raises interest rates to 97% to combat inflation and monitor financial markets while the government seeks international support. The country faces economic uncertainty, with the highest inflation rate since 1991 and looming presidential elections.

Argentina’s Central Bank has announced that it will raise interest rates to 97% in an attempt to combat inflation. The decision was made as policymakers struggled to contain a selloff in the peso, which has lost 35% of its value against the dollar so far this year in parallel markets.

The Central Bank stated that it would continue to monitor the evolution of the general price level, the dynamics of financial and foreign exchange markets, and monetary aggregates to calibrate its rate policy.

The BCRA will continue to monitor the evolution of the general price level, the dynamics of financial and foreign exchange markets, and monetary aggregates to calibrate its rate policy.

the Central Bank stated.

The country is currently engaged in economic uncertainty, with presidential elections looming. The Argentinian consumer price index rose to 102.5% in February, the nation’s highest since 1991, prompting the Central Bank to take action.

The government plans to obtain more international support for its dwindling foreign reserves by accelerating deals with the International Monetary Fund, China and Brazil through the BRICS group, which also includes Russia, India, and South Africa, according to an official.

Bloomberg reported on the potential development of the country, noting that the “emergency measures” were to curb currency losses amidst “spiraling” inflation. However, presidential elections are on the horizon for the country, with its economic state threatened by concerning fragility.

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