Argentina increases basic rate 300 points to 30.25% to combat inflation

Sunday, April 29th 2018 - 05:22 UTC

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Argentina's central bank surprised markets at the end of the week by jolting its key interest rate up to 30.25% from 27.25%, citing weakness of the local peso against the US dollar and vowing to act again if high inflation persists. Read full article

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Enrique Massot
Argentina’s governing ship Cambiemos is taking water from all sides, as electors realize they were sold nothing but smoke and mirrors during the 2015 election campaign.

No matter. Captain Mauricio Macri continues without flinching a brutal adjustment program that is transferring wealth from the majority into the hands of a few chosen ones.

While the government was quick to lift or reduce taxes on exports of agricultural and mining products, it next applied the brakes on wages, slowed down retirees’ income increases, and allowed steep increases of energy and transportation costs to consumers and businesses.

Meanwhile, a deep fiscal deficit has only grown, financed with unprecedented amounts of foreign borrowing. Opening imports and declining consumption hurts small and medium-size business and regional economies.

Of course, some Argentines remember similar processes—during the military dictatorship of the 1970s, during the Menem government of the 1990s, and finally at the end of the Fernando de la Rua cycle in 2001. All ended in disaster, causing enduring pain to the population but allowing some entrepreneurs to make fortunes through financial speculation and dirty business operations.

The self-named Joyful Revolution is quickly becoming a valley of endless sorrow.
Apr 30th, 2018 - 03:56 am - Link - Report abuse -3
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Marc1
Turning the tide of the disaster left by the previous government was never going to happen overnight and the subsidies on utilities and other services were unsustainable.
You may not like it Enrique, but this is a long term plan and not a get rich quick plan for Macri's mates.
May 03rd, 2018 - 02:42 pm - Link - Report abuse +1
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