Argentina raises interest rate by 21 percentage points to 118%

By Ovunc Kutlu

ISTANBUL (AA) - Argentina's central bank on Monday raised its benchmark interest rate by 21 percentage points to 118%.

Banco Central de la República Argentina, in addition, devalued its currency by 18%. The peso will be held at 350 against the US dollar, from 287 on Friday.

Annual consumer inflation in the South American nation jumped to a new record of 115.6% in June.

The central bank raised its benchmark interest rate by a total of 19 percentage points in less than a month earlier this year to tame rising inflation.

On May 15, it raised the interest rate by 600 basis points to 97%, following a rate hike of 1,000 basis points to 91% on April 27 and 300 basis points to 81% on April 20.