Argentina is going full Volcker! That is, raising the central bank rate to cool inflation like Fed Chair Paul Volcker did in 1979-1981.
Apparently, Argentina’s central bank is trying a “Volcker” (aka, a Hail Mary pass).
(Bloomberg) — Argentina’s central bank raised the 7-day Leliq rate to 65 percent from 60 percent, according to two people with direct knowledge of the matter.
The peso fell 3.2% to 41/USD at the open in Buenos Aires.
According to Steven Hanke, Argentina’s annual inflation rate is 131% (a far cry from the “official” inflation rate).
On the news, the Argentina Peso fell relative to the US Dollar.
Say, that is a catchy tune!