Argentina is poised to raise interest rates by 600 basis points as inflation rises

Argentina is preparing for a raft of emergency measures, including raising key interest rates by 600 basis points to 97% on Monday, as inflation spirals out of control in the run-up to the presidential election, according to Bloomberg News, citing officials at the Economy Ministry and the central bank. .

The central bank will raise its benchmark interest rate while stepping up intervention in the foreign exchange market in an effort to curb a massive sell-off of the peso, which weakened 13 percent against the dollar last month, said the officials, who asked not to be named before the measures were formally announced. Before the Minister of Economy, Sergio Massa.

Meanwhile, the government intends to get more international support for its dwindling foreign reserves by accelerating deals with the International Monetary Fund, China and Brazil through the BRICS grouping, which also includes Russia, India, China and South Africa, said one of the officials.

The measures come after April inflation data released Friday afternoon showed prices rose 108.8 percent from a year ago, well above market expectations and the highest level since 1991.

The monetary authority recently raised interest rates by 10 percentage points to 91%.