Argentina’s central bank (BCRA) hoisted the benchmark interest rate back up to record levels last week after inflation reached a 12-month high in February. Time is starting to run out for President Mauricio Macri. If he is going to secure re-election in October, his government will need to get a firm grip on inflation and improve the country’s economic fundamentals. Days after the adverse inflation result, the International Monetary Fund (IMF) cleared US$10.87bn of credit for use by the Macri administration but not without calling for “further restraint in government spending”. This will constrain Macri’s room for manoeuvre as elections approach.End of preview - This article contains approximately 922 words.
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