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The Central Bank of Argentina raised its target rate of 300 basis points to 33.25% on Thursday, but it was less than two degrees to raise interest rates in less than a week, but it still failed to stop the Argentina Peso exchange rate from falling to a new low.
Peso dropped 7.83% to 23 pesos on Thursday and fell to 21.2 pesos on Wednesday, Argentina. The central bank raised its target interest rate from 27.25% to 30.25% last Friday, followed by holidays, and Wednesday is the first trading day after the holiday.
The Central Bank of Argentina said in a statement on Thursday that it would continue to use all available tools to reach its 15% inflation target in 2018 and may increase interest rates again. The Central Bank of Argentina has abandoned the calendar of reviewing monetary policy every other week on Tuesday.
Argentina President Makri (Mauricio Macri) is expected to seek re-election in the 2019 general election. The government has adopted a number of policies aimed at stimulating economic growth. It is expected that under the pressure of politics, the central bank will maintain a loose economy in order to raise interest rates.
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