Raises rates by 3 percentage points
In a world where most countries are moving in 0.25% increments, Argentina is an outlier. The central bank hike the 7-day repo rate to 30.25% Friday from 27.25%. Now, they’ve done it again with a further 300 bps move to 33.25%.
The central bank has also been intervening heavily in the FX market to prop up the peso, but as you can see, it’s not working.
There is a run on the Argentine currency at the moment and that’s spreading jitters throughout emerging markets and helping to give the US dollar a broader lift.