Argentina: Risk Increases with Audio Scandal

The increase in interest rates – in real terms, reaching double digits – and new requirements for bank operations, which increased minimum daily deposits, have also put the government on a collision course with a sector once considered an ally. ‘The second semester is conditioned by historically high interest rates that are not compatible with activity recovery due to the increase in credit costs. In this context, it is unlikely that activity data will show improvements in the period leading up to the elections, as rates will remain high until then to contain the dollar,’ says Invecq.