Argentina's Central Bank Takes Drastic Measures, Raises Interest Rate to 133% Amidst Soaring Inflation

Argentina's central bank has raised its key interest rate to 133% in an attempt to curb inflation, which has surged above 100% ahead of the upcoming presidential election. This is the sixth rate hike this year, and comes after September inflation data showed prices rose 138.3% from a year ago. However, economists believe the rate hike will have little impact on inflation as it is accompanied by money printing to finance government spending and falls below inflation in real terms. The Argentine peso has also suffered sharp losses, with the black market exchange rate weakening about 20% in October.