Will Argentina raise interest rates?

(By comparison, inflation hovers below 5% in the US, where the central bank has raised key interest rates by five percentage points over 14 months.) Argentina’s central bank is also hoping the rate hike will incentivize investments in the country’s currency, according to the central bank’s statement released Monday.

Why did Argentina's Central Bank lower its interest rate?

Argentina’s Central Bank lowered its benchmark interest rate Friday for the first time in nearly six months as President Javier Milei continues to oversee a slowdown in inflation in the crisis-prone economy. The monetary authority cut borrowing costs to 35 percent from 40 percent, according to a press release sent via text message.

Why did Argentina slash interest rates?

Argentina's central bank slashed the benchmark interest rate to 40% from 50% on May 15th, marking the sixth adjustment since December due to a slowdown in the inflation rate, bringing the rates to the lowest since June 2022.