Argentine markets swooned Thursday after the central bank unexpectedly raised its policy rate for the second time in a week, spooking investors who see the moves as an emergency measure to stem the rapid depreciation of the peso.
Argentina’s central bank held an unscheduled meeting Thursday to raise its policy rate by 3 percentage points to 33.25%. The central bank said it took the action to “guarantee the process of disinflation and is ready to act again if necessary.”
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