"The BCRA will continue to monitor the evolution of prices, the dynamics of the financial and forex markets, and monetary aggregates in order to calibrate its rates policy," it said.
'PROMISING, BUT LATE' Analysts cheered the move, though cautioned that it was only a bandage for Argentina's many economic woes. The major global grains and beef supplier is battling inflation that topped 104% in March, with analysts predicting prices will rise this year by some 110% to 130%. The peso currency is also quickly losing value against the dollar. "The rate increase is a promising measure, but late," said Sergio Chouza from the Sarandi consultancy. Analyst Leonardo Chialva said the move would be a "patch" that could bring calm to the markets for now but would not fix the root issues, especially with the government under pressure to spend ahead of general elections in October. "The underlying problem is the fiscal one, and the cure needed is difficult to pull off in an election year," Chialva said. The South American country has a $44 billion loan program with the International Monetary Fund (IMF), which includes targets to have a positive real interest rate, rein in inflation and build up its scant foreign currency reserves. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Argentina rate hikes Argentina rate hikes Argentina: inflation spirals Argentina: inflation spirals (Interactive) ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Jorge Otaola; Writing by Adam Jourdan; Editing by Jonathan Oatis and Rosalba O'Brien)
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