Saturday, August 23, 2025

Argentina’s Central Bank Hikes Rates by 950 Basis Points as Inflation Spirals Out of Control

Argentina’s central bank urgently raised borrowing costs by a staggering 950 basis points this week, in face of 20 year-high inflation that continues to spiral out of control.

The Central Bank of Argentina hiked its benchmark interest rate for the 28-day term from 60% to 69.5% on Thursday, merely two weeks after delivering an 800 basis point increase amid a government cabinet overhaul that appointed a new economy “superminister.” The colossal rate hike comes after latest inflation data showed consumer prices jumped 7.4% in July, bringing the country’s annual inflation rate to a 20-year high of 71%.

Argentina’s central bank said the unprecedented increase in borrowing costs “will help reduce inflation expectations for the remainder of the year and consolidate financial and exchange stability,” while also bringing interest rates closer “to a positive terrain in real terms.” Argentina’s economy has been plagued with catastrophic debt levels as well as a government addicted to overspending; according to sources cited by CNBC, the country’s inflation rate is expected to hit 90% by the end of 2022.

The latest figures come at a dismal time for other countries in the region as well: Mexico’s annual inflation rate jumped to 8.15% in July— the highest since December 2000, prompting the country’s central bank to raise rates by 75 basis points to 8.5%.


Information for this briefing was found via CNBC and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

A Medical Breakthrough the Market Overlooked | David Elsley – Cardiol Therapeutics

Why Grade Beats Size in Silver Mining | Frank Basa – Nord Precious Metals

Are Investors Missing the Start of the Next Commodity Supercycle? | Morgan Lekstrom – NexMetals

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

New Home Sales on the Decline as Rising Mortgage Rates Bite

Purchases of new home sales continued to slide in June, as elevated prices and rising...

Wednesday, July 27, 2022, 12:48:00 PM

Rising Food Costs And A Turkey Shortage Threaten This Year’s Thanksgiving Dinner

Thanksgiving will not be the same this year. On top of the rising costs of...

Sunday, November 6, 2022, 01:18:00 PM

Goodbye Discretionary Spending: Evidence of an Economic Slowdown From Walmart, Apple, and Amazon

It’s no secret that the days of discretionary spending are over. With consecutive declines in...

Friday, January 6, 2023, 06:26:00 AM

US Producer Prices Soar By Fastest Pace on Record

Following last week’s eye-watering CPI print that even prompted Joe Biden to quell market fears,...

Wednesday, December 15, 2021, 10:14:00 AM

Stagflation! US Economy Unexpectedly Contracts For First Time Since 2020

Well that didn’t go as planned! America’s economy unexpectedly contracted in the first quarter of...

Thursday, April 28, 2022, 12:31:00 PM