Argentina Raises Key Rate to 133% to Curb Soaring Inflation, But Economists Doubt Effectiveness

Argentina's central bank raised its key interest rate to 133% in an attempt to curb inflation, which accelerated to 138.3% in September.

This was the sixth rate hike this year and came after the peso weakened sharply on the black market.

Economists say the rate hike won't effectively control inflation given ongoing money printing to finance government spending.

Leading presidential candidate Javier Milei encouraged Argentines to stop saving in pesos and instead switch to dollars.

The peso has lost 20% on the black market in October despite the central bank freezing the official exchange rate until after the election.