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Official Says Argentina Very Likely to Boost Key Rate This Week

ARGENTINA
  • Argentina’s central bank is planning to increase interest rates in its upcoming board of directors meeting on Thursday as inflation accelerates, according to a senior government official. (BBG)
  • As mentioned earlier, it is worth noting the BCRA announced rate hikes following the release of the CPI print in each of the past five months and so some analysts believe this could occur again. One estimate assumes policy makers could hike by a further 200 bps to 51% to keep real rates close to May levels.
  • Argentina May CPI data is due later today:
    • 2000BST/1500ET: May Greater Buenos Aires CPI YoY, prior 59%; MoM prior 6.20%
    • 2000BST/1500ET: (Argent) May National CPI YoY, est. 60.60%, prior 58%; MoM est. 5.20%, prior 6.00%

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