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Argentina raises interest rates to 40%
 [BBC] Argentina's central bank has raised interest rates for the third time in eight days as the country's currency, the peso, continues to fall sharply.How can such a resource-blessed country screw it up so monumentally? Castro/Mexico/Che/Perons/... On Friday, the bank hiked rates to 40% from 33.25%, a day after they were raised from 30.25%. A week ago, they were raised from 27.25%. The rises are aimed at supporting the peso, which has lost a quarter of its value over the past year. Analysts say the crisis is escalating and looks set to continue. Argentina is in the middle of a pro-market economic reform programme under President Mauricio Macri, who is seeking to reverse years of protectionism and high government spending under his predecessor, Cristina Fernandez de Kirchner. Inflation, a perennial problem in Argentina, was at 25% in 2017, the highest rate in Latin America except for Venezuela. This year, the central bank has set an inflation target of 15% and has said it will continue to act to enforce it. Posted by: Frank G 2018-05-05 |
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