Argentina: Central Bank hikes interest rate again in September
On 15 September, the Central Bank of Argentina (BCRA) decided to hike the LELIQ rate to 75.00% from 69.50% in an attempt to limit inflation and inflation expectations, and support the peso. Moreover, the Bank hiked a series of secondary rates.
The Bank increased rates again due to a further acceleration in inflation and amid continued financial volatility. Inflation spiked to 78.5% in August from 71.0% in July. Argentina’s monetary policy is framed in an agreement with the IMF; the country has committed to moving gradually towards positive real interest rates.
Looking ahead, the Bank reiterated that it will continue to “calibrate” the key interest rate amid the gradual normalization of its monetary policy stance.