Argentina’s central bank on Monday hiked its base interest rate by six points to 97 percent as the government prepares to announce a spate of measures to tackle soaring inflation.
It is the second time in less than a month that the bank has ramped up interest rates as year-on-year inflation hit almost 109 percent in April.
In a statement the central bank said the move aimed at “preventing financial volatility from acting as a driver of inflation expectations.”
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The rate hike will take effect Monday, the source added.
The South American nation is battling to bring down inflation that hit 109% on an annual basis in April. It also faces tumbling confidence in the peso and dwindling foreign currency reserves that are threatening the government’s finances.
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