Argentina’s Central Bank increased its benchmark interest rate by 950 basis points.

The Central Bank of Argentina (BCRA) increased interest rates by 950 basis points. According to the statement made by BCRA, with the 8th increase of this year, the Leliq interest rate increased from 60.00 percent to 69.50 percent.

About an hour after the announcement of the interest rate decision, it was announced that inflation had risen to 71.00 percent annually. Analysts are assessing that inflation in Argentina could exceed 80 percent this year.

The BCRA has set the new floor for individuals at 69.50 percent for 30-day deposits of up to 10 million pesos. For the remainder of private sector deposits, the rate will be 61.00 percent.

The BCRA stated that it will continue to adjust the policy rate within the framework of the ongoing monetary policy normalization process and will pay special attention to the past and future development of the general price level and the foreign exchange market dynamics.