Argentina to announce new economic measures after peso freefall
Updated : August 31, 2018 07:00 AM IST
After the market close, Treasury Minister Nicolas Dujovne pledged to announce a set of new economic measures on Monday, and will target a fiscal deficit for 2019 that is lower than the current target of 1.3 percent of gross domestic product in order to reduce the government's need to go to debt markets.
Onerous borrowing costs combined with government spending cuts and a drought that crippled Argentina's agricultural sector this year have slammed Latin America's third-largest economy. It is expected to enter recession in the third quarter.
In an effort to stem a slide in the peso, the world's worst-performing currency this year, and to curb inflation running at 31 percent, the central bank's monetary policy committee at an emergency meeting on Thursday voted unanimously to raise its benchmark rate to 60 percent from 45 percent.
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
THANK YOU! You made our day. See you every morning
YOUR EMAIL IS ON ITS WAY. Check your inbox for future updates.
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more