FIAT: Argentina to Increase Interest Rates to 75% as Inflation Nears 100%
Posted on 09/18/2022
On September 15, 2022, Banco Central de la República Argentina (BCRA) raised its benchmark interest rate (Liliq) by 5.5 percentage points to 75%. The Central Bank of Argentina did this after data showed consumer prices climbed nearly 79% a year in August 2022, the fastest pace in 30 years. It was the central bank’s ninth rate hike this year.
Argentina is trying to finalize and conclude the US$ 44 billion loan agreement with the International Monetary Fund (IMF). Argentina commits to implementing the IMF program despite the risks. The main provisions of the agreement include keeping interest rates above the inflation rate.