President Alberto Fernandez's government is looking to bring the economic situation under control as elections near, with opinion polls showing flagging support for the ruling Peronist party. (Reporting by Jorge Otaola and Maximilian Heath in Buenos Airies Writing by Adam Jourdan and Kylie Madry Editing by Matthew Lewis and Grant McCool)
Messaging: adam.jourdan.thomsonreuters.com@reuters.net)) (Adds detail on interest rate hike, paragraph 3)
By Jorge Otaola and Maximilian Heath
BUENOS AIRES, May 14 (Reuters) - Argentina's government
announced a package of measures to rein in soaring inflation and
support the wobbly peso currency on Sunday, including rate
adjustments, more interventions in the exchange market and
expedited deals with creditors.
The measures include an interest rate hike by the central
bank, the economy ministry said in a statement. The ministry did
not elaborate, but an official source told Reuters the hike
would be 600 basis points, bringing the rate up to 97%.
The rate hike will take effect Monday, the source added.
The South American nation is battling to bring down
inflation that hit 109% on an annual basis in April. It also
faces tumbling confidence in the peso and dwindling foreign
currency reserves that are threatening the government's
finances.
The central bank will also increase its intervention in the
foreign-exchange market and double down on its currency
devaluation plan, the ministry said.
An agreement with the International Monetary Fund to dole
out funds to the cash-strapped nation will be sped up as well,
the ministry added.
More measures are set to be announced in coming days,
according to the ministry.
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