Crisis-torn Argentina lifts interest rates to 60%

INTEREST rates in Argentina were raised to 60pc last night as its economic crisis dragged the peso to a record low.

The central bank raised rates from 45pc to prop up the currency and bring skyhigh inflation back under control. It came just a day after Argentina begged the International Monetary Fund for the early release of nearly £40bn of loans.

President Mauricio Macri had said the money would not be used and was wanted as a precautionary measure. But fears about Argentina’s economy deepened after the IMF released the funds and the country’s central bank raised rates.

It is the fifth interest rate rise since April. Meanwhile, the peso has lost more than half its value this year, making it the worst-performing currency in the world.

The IMF has urged the government to strengthen its fiscal and monetary policy and investors are concerned Argentina may default on its loans.

Families have struggled as sky-high inflation of 30pc pushes up the cost of living, leading to a 6.7pc slowdown in the economy. Inflation has soared as the government increases the price of gas and electricity.