Argentina’s central bank hikes rates again in another emergency move

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.

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