Argentina’s central bank has raised the country’s benchmark interest rate to 133% from 118% as inflation data came in worse than forecast, 10 days before voters go to the polls to choose a new president amid a deepening economic crisis.
The hike, announced on Thursday, came shortly after September inflation figures were released, landing above expectations at 12.7% monthly and 138% annually. The move worsens surging prices that have sapped wages and savings and pushed two out of every five people in Argentina below the poverty line.
Argentina’s central bank is struggling to keep the benchmark interest rate in line with inflation expectations, with the latest hike becoming the sixth in 2023. The key interest rate was 75% at the beginning of the year.
Yet a central bank poll of analysts is forecasting inflation to end the year at more than 180%.
Some commentators questioned whether the latest hike was too late amid a worsening economic scenario.
Բաժանորդագրվեք մեր ալիքին Telegram-ում
