In Argentina, the Central Bank raised its benchmark interest rate by 950 basis points yesterday as the country struggles to keep a lid on spiraling inflation that rose to a 20-year high of 71 percent.
Local media reports that prices rose 7.4 percent in July which was above expectations and pushing annual inflation to a 20-year high of 71 percent. In a statement, the Central Bank of Argentina said that its decision will help reduce inflation expectations for the remainder of the year and consolidate financial and exchange stability.
On other hand, the Mexican central Bank also raised the country’s benchmark interest rate three-quarters of a percentage point to 8.5 on Thursday.
Media reports said that its highest level since the bank’s current regime was put in place in 2008.
Mexico’s annual inflation climbed last month to 8.15 percent.
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