Argentina Interest Rate Seen Up 200 bps as Inflation Boils Over

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Argentina's benchmark interest rate is likely to be hiked another 200 basis points next week, analysts polled by Reuters estimated, as the central bank seeks to counter soaring and painful inflation that could top 70% this year, Reuters reported. The survey of seven analysts and traders indicated the bank would likely hike the rate to 51% from its current level of 49%, according to a median of the responses. The estimates ranged from no change to a steepest hike of 350 basis points. Inflation in the South American country is running at 58% and forecast to hit 72.6% by the end of the year, according to the latest poll of analysts by Banco Central de la República Argentina (BCRA). The bank has hiked the interest rate five times already this year. Read more.