Argentina to Hike Rates in Bid to Stem Inflation Crisis

Argentina will unveil a set of emergency measures in a bid to stem additional currency losses, including a large increase to its key interest rate, as inflation spirals out of control in the run up to presidential elections, according to officials at the Economy Ministry and the central bank, Bloomberg News reported. The monetary authority will raise its benchmark rate by 600 basis points to 97% on Monday while boosting intervention in the foreign exchange market, the officials said, asking not to be named before measures are formally announced by Economy Minister Sergio Massa. Policymakers are struggling to contain a selloff in the peso, which in parallel markets has lost 35% of its value against the dollar so far this year. The government intends to obtain more international support for its dwindling foreign reserves by speeding up deals with the International Monetary Fund, China and Brazil through the BRICS group, which also include Russia, India, China, and South Africa, one of the officials said. Read more.