(Bloomberg) — Argentina’s central bank is ruling out increasing interest rates for the foreseeable future even as currency pressures mount and annual inflation climbs above 50%.
The country’s monetary authority is prepared to keep holding its key rate for months to come, according to people with direct knowledge of the matter. The central bank, know as BCRA, is betting that inflation will slow in the remainder of the year and is optimistic that international reserves will continue to grow, said the people, declining to be named discussing internal policy.
Argentina’s central bank has held its benchmark rate at or around 38% since March 2020. After a slowdown during the second part of last year, annual inflation accelerated back to 50.2% in June.
Meanwhile in US…
Grocery Prices Could Rise 10 to 14 Percent By October, Grocery Chain CEO Warns
The latest June data already show price inflation at a 13-year high, with prices having risen 5.4 percent year-over-year. Proponents of the big-government policies driving much of this increase insist the uptick in prices is only temporary.
But billionaire and grocery chain CEO John Catsimatidis just predicted that overall price inflation, for consumer goods generally, will hit a 6 percent annualized rate by October.