Argentina’s Milei vows to push economic reforms with or without parliament
Al JazeeraFeb 28
Argentina: Central Bank Slashes Interest Rates by a Fifth
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Image copyright: Tomas Cuesta/Stringer/Getty Images News via Getty Images
The Facts
The Central Bank of Argentina on Monday announced a 20-point cut to its benchmark interest rate, from 100% to 80%, after the peso strengthened against the US dollar in parallel markets.
The move comes as inflation has slowed following a significant price adjustment in December, when the government reduced the money supply by about 2T pesos ($2.3B) — far beyond the 2024 net-zero financing goal agreed with the International Monetary Fund.
The Spin
Establishment-critical narrative
The inflation rate has fallen in Argentina month after month since the libertarian economist-turned-president took office and implemented his shock therapy to revive his country's economy, which has long suffered from hyperinflation and rising poverty. If that wasn't enough, his government has posted the first monthly budget surplus in over a decade. Milei is making remarkable inroads to fixing the Argentinian economy.
Pro-establishment narrative
As the far-right Milei has devalued the peso and cut subsidies for essential services, the average Argentine citizen is paying the price for his fiscal adjustment program. Poverty has reached an all-time high in the country, as the purchasing power of wage workers has fallen by roughly 14%, and on top of that, there's a recession now looming on the horizon.
