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Central Bank Undergo Emergency Action to Tame Multi-Decade High Inflation

ARGENTINA
  • Outside of market hours yesterday, the central bank of Argentina announced their intentions to raise rates by 600bps to 97%, tightening policy alongside boosted FX intervention. The actions are taken in conjunction with an appeal for support from BRICS, the IMF and China on the measures, as inflation runs higher and currency weakness pervades further.
  • The emergency actions follow the latest inflation data posted Friday showing CPI rose 8.4% on the month, and 108.8% on the year - the highest level in over 30 years and beyond market expectations.

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