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

Why Copper Juniors Could Explode After This Trade War Move | Christian Easterday – Hot Chili

Silver Is Rarer Than Gold, And the Market’s Waking Up | Shawn Khunkhun – Dolly Varden Silver

Gold Will Hit North of $4,000: Who’s Actually Producing? | Shane Williams – West Red Lake

Recommended

ESGold Sees ANT Survey Reveal Vertically Continuous System To 1,200 Metres Depth

First Majestic Produces 7.9 Silver Equivalent Ounces In Q2, Lifts Production Guidance

Related News

Argentina’s Inflation Soared Past 100% in March

Inflation in Argentina soared by more than 100% last month, as the South American nation...

Wednesday, April 19, 2023, 06:19:00 AM

Jerome Powell Hikes Rates 50 Basis Points, Signals More Hawkish Tightening

As widely expected, central bank officials raised borrowing costs another 50 basis points, bringing the...

Wednesday, December 14, 2022, 02:30:50 PM

US Consumer Confidence Plummets Amid Renewed Inflation Fears

US consumer sentiment sharply declined at the beginning of May, as an increasing number of...

Sunday, May 16, 2021, 12:46:00 PM

Bank of Canada Expected to Raise Rates Again in a Bid to Tackle Inflation

The Bank of Canada is set to increase interest rates this week, indicating its commitment...

Monday, July 10, 2023, 08:16:55 AM

Canada Sees Inflation Rise By 2.9% In January

The Consumer Price Index in Canada experienced a notable deceleration in January, rising by 2.9%...

Tuesday, February 20, 2024, 08:55:40 AM