Argentina Central Bank Seeks to Cut Rates and Slow Inflation

Argentina’s new central bank president pledged to further cut interest rates to boost a free-falling economy while fighting inflation through a “social pact” that would encourage companies to raise production rather than prices, Bloomberg News reported. Miguel Pesce said he expects the key rate floor to fall again in January after two cuts last month. At 55%, the benchmark rate is still the world’s highest, although considerably lower than the September peak of 85% recorded under his predecessor. “We will definitely continue with the descending rate path,” Pesce said in his first interview with foreign press in the new position. “High rates didn’t have the effect of slowing inflation and they were creating a sharp recessionary effect.” Read more