© Reuters. The facade of Argentina’s Central Bank is pictured in the financial district of Buenos Aires, Argentina December 7, 2021. REUTERS/Agustin Marcarian
BUENOS AIRES (Reuters) -Argentina’s central bank raised the country’s benchmark interest rate to 145% from 118% on Thursday, a source close to the matter told Reuters, as the South American country battles triple-digit annual inflation.
The hike follows the rapid freefall of Argentina’s peso, with the currency surpassing the psychological barrier of 1,000 pesos per U.S. dollar earlier this week with less than two weeks before a crucial presidential election.
Inflation has sapped wages and savings and pushed two out of every five people in Argentina below the poverty line as the country prepares to vote in general elections scheduled for October 22
Argentina’s monthly inflation rate stood at 12.7% in September, according to data from the country’s statistics agency released Thursday, landing above a Reuters poll forecast of 11.5%. That brought the annual inflation rate to 138.3%.
