- 16 May 2023 05:41
#15274262
Note that Argentina did not raise their rates by 97% but rather to 97% !
The Central Bank of Argentina raised its key interest rate Monday by six percentage points to 97% in an effort to tackle soaring inflation that has reached 30-year highs.
May 15, 2023
https://english.news.cn/20230516/0d69c0 ... 0be/c.html
https://www.cnn.com/2023/05/15/business ... ar%20highs.
Honestly, not that surprising this is happening in Argentina. They're had rampant inflation problems in their country's past history.
Argentina is one of the more prosperous nations in Latin America, much more like a "Second World" country than a "Third World".
When the level of inflation is so high, you have to let the interest rates match the inflation rate. It's too expensive for the government's Central Bank to try to artificially suppress interest rates at that point. It would just contribute to more inflation. So Argentina's Central Bank has pretty much given up, thrown in the towel, and is letting the country's interest rates fall where they may, dictated by the free market, which is going to be high in the presence of massive inflation.
Argentina's inflation rate was 94.8% for the year of 2022.
The Central Bank of Argentina raised its key interest rate Monday by six percentage points to 97% in an effort to tackle soaring inflation that has reached 30-year highs.
May 15, 2023
https://english.news.cn/20230516/0d69c0 ... 0be/c.html
https://www.cnn.com/2023/05/15/business ... ar%20highs.
Honestly, not that surprising this is happening in Argentina. They're had rampant inflation problems in their country's past history.
Argentina is one of the more prosperous nations in Latin America, much more like a "Second World" country than a "Third World".
When the level of inflation is so high, you have to let the interest rates match the inflation rate. It's too expensive for the government's Central Bank to try to artificially suppress interest rates at that point. It would just contribute to more inflation. So Argentina's Central Bank has pretty much given up, thrown in the towel, and is letting the country's interest rates fall where they may, dictated by the free market, which is going to be high in the presence of massive inflation.
Argentina's inflation rate was 94.8% for the year of 2022.