Argentina hikes interest rate by 550 basis points to 75% after inflation overshoots.
[Imagine this coming to the U.S. soon.]
Argentina’s central bank hiked the country’s benchmark interest rate 550 basis points to 75% on Thursday, a day after inflation overshot forecasts to near 80% on an annual basis.
The hike followed a 950 basis points-raise in August of the 28-day Leliq benchmark rate, as the government tries to bring down spiraling prices that are hurting Argentines’ savings and salaries and denting the popularity of the Peronist government.