Argentina Hikes Interest Rates To 75% As Inflation Approaches 100%

A shopper inside a grocery store in San Francisco, California, U.S., on Monday, May 2, 2022. U.S. inflation-adjusted consumer spending rose in March despite intense price pressures, indicating households still have solid appetites and wherewithal for shopping. Photographer: David Paul Morris/Bloomberg , Bloomberg  

Bloomberg: Argentina to Hike Interest Rates to 75% as Inflation Nears 100% 

(Bloomberg) -- Argentina’s central bank raised its benchmark interest rate Thursday in a bid to prop up its currency and curb inflation nearing 100%. 

The central bank boosted its benchmark Leliq rate by 5.5 percentage points to 75%, according to an emailed statement. 

The move comes a day after data showed consumer prices jumped nearly 79% a year in August, the fastest pace in 30 years. It was the bank’s ninth rate hike this year. 

The bank’s board of directors also added in the statement that it intends to reduce the level of short-term debt held by the central bank next year, but didn’t provide more specifics.  

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Update #1: Argentina hikes interest rate by 550 basis points to 75% after inflation overshoots (CNBC/Reuters)  

Update #2: Economists say Argentina to see 95% inflation in 2022 (BNN) 

WNU Editor: The Argentine government has lost control. And the sad part is that Argentina's government believes the situation will be improving next year .... Argentina's draft budget sees inflation next year at 60%, growth at 2% (Reuters).