By Jorge Otaura
BUENOS AIRES (Reuters) – Argentina’s central bank may raise its benchmark interest rate to
this month % , a source with direct knowledge of the board discussions said on Thursday to support the troubled peso currency in one of the world’s most inflationary countries.That would be a 550 basis point jump from current levels 69.5%.
The source, who declined to be identified as a private meeting, said rate hikes would depend on a rise in the consumer price index (CPI), with annualized inflation exceeding 70%, and is expected to reach 90% or more by the end of the year.
“The evolution of retail prices is being watched closely, rising again, not ruling out that interest rates are in line with upcoming August (CPI) data to be able to beat inflation, an adviser to the central bank told Reuters. .
Bonnet discussed the ard and made no decision, but it would not be unreasonable if the tax rate could go up to 90%,” The source added.
A spokesman for the central bank declined to comment.
The central bank has significantly raised 28-day ‘Leliq’ in recent months, 800 and 950 bps improvements follow regular minor adjustments earlier this year.
Three analysts told Reuters they expect 400 and 90 rate hikes this month basis points, while the monthly inflation forecast for August was 6%-6.5%. Inflation data for August will be released in September .
