Argentina rate hiked to 69.5% as inflation hits 20-year high

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Argentina's central bank has raised its main rate of interest in order to control inflation.

The bank hiked its benchmark rate for the second time in less than a month.

The country's inflation has hit a 20-year high.

After the latest US data showed that inflation had lessened, there was hope that prices had peaked.

The bank said that the rise in the policy rate would help reduce inflation expectations.

After raising the rate by 8 percentage points two weeks ago, the bank hiked it again.

By the end of the year, the country's inflation rate is expected to be over 90 percent.

Argentina's newest economy minister is focused on controlling soaring prices, tackling high debt levels and reining in government spending.

The third person to hold the post since early last month is Mr. Massa who wants to calm inflation using a more conventional approach.

He wants to raise interest rates and not call on the central bank to print more money.

After more than two and a half years as finance minister, Martn Guzmn stepped down in July. His replacement, Silvina Batakis, lasted just one month.

Argentina was able to avoid default on the International Monetary Fund loan.

The impact of measures the government has to implement to meet the conditions of the deal is a cause of concern.

Protestors have taken to the streets of the capital to protest against the president's handling of the economy.