Argentina Raises Interest Rates To 40%

BBC New: Argentina raises interest rates to 40%

Argentina's central bank has raised interest rates for the third time in eight days as the country's currency, the peso, continues to fall sharply.

On Friday, the bank hiked rates to 40% from 33.25%, a day after they were raised from 30.25%. A week ago, they were raised from 27.25%.

The rises are aimed at supporting the peso, which has lost a quarter of its value over the past year.

Analysts say the crisis is escalating and looks set to continue.

Argentina is in the middle of a pro-market economic reform programme under President Mauricio Macri, who is seeking to reverse years of protectionism and high government spending under his predecessor, Cristina Fernandez de Kirchner.

Inflation, a perennial problem in Argentina, was at 25% in 2017, the highest rate in Latin America except for Venezuela.

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WNU Editor: I lived through all of this in Russia after the fall of the Soviet Union. Sky-high inflation that was eventually brought down and controlled by sky-high interest rates. This is not a pleasant experience for anyone to go through .... but debt and inflation and not doing anything about it over the long term is far worse (just look at Venezuela).

More News On Argentina Raising Interest Rates To 40%

Argentina hikes interest rate to 40 percent to avoid new meltdown -- DW
Battered Argentine peso rises after interest rate jump -- Washington Post
Argentina Central Bank Boosts Main Rate to 40% in Third Rise in Eight Days -- Wall Street Journal
Argentina pushes interest rates to 40% to defend the peso -- The Guardian
Argentina raised interest rates for the second time in 24 hours — to 40% -- Business Insider
Argentina raises key rate to 40 pct -- in third hike in a week -- Digital Journal
Why Argentina's economy is in trouble again -- Sky News

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