Argentina’s central bank raised its benchmark interest rate on Thursday, the highest in three years, in the wake of a broad rate hike by the Federal Reserve, the central bank of the United States, and as the southern country American fights a very high inflation, in about more than 60%.
The central bank raised the Leliq benchmark rate by 300 basis points to 52%, the sharpest increase since 2019, citing growing perceptions of financial risk, soaring global prices and the need to stimulate the economy with the hard-hit peso. place.
The move to Argentina, which suffers from one of the highest levels of inflation in the world, comes as Brazilian and European central banks have recently raised interest rates to combat rising prices.
“The interest rate hike acts mainly by encouraging the economy in pesos,” the Argentine central bank said, adding that it would continue to calibrate monetary policy in line with inflation.
Source: CNN Brasil
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