The Central Bank of Argentina raised the base discount rate to 81% – Kommersant

Central Bank of Argentina last night announced on raising the base discount rate of refinancing by 3% to 81%. The regulator is forced to take these measures as part of the fight against inflation: in March it amounted to 104.3% compared to March last year and 7.7% compared to February.

Currently Argentina takes second place in the world in terms of the discount rate of the Central Bank. In first place with 95% is Zimbabwe, in third is Venezuela with 36%. Also in the top ten countries with the highest rates of the Central Bank are Uzbekistan, Moldova, Madagascar, Hungary, Georgia, Sierra Leone and Uganda.

Interviewed Reuters analysts had expected a rate hike in Argentina from 78% to 81% after the release of data on March inflation accelerated due to low soybean and corn crops. This led to an increase in the prices of many foodstuffs and a depreciation of the peso against the dollar. Since the beginning of the year, the Argentinean currency has fallen in price against the dollar by 24%.

Evgeniy Khvostik