RIO DE JANEIRO, BRAZIL - Why, with an inflation rate of around 50% per year, are interest rates so low? Why does the Central Bank, contrary to any other central bank in the world, not raise the cost of money when inflation is rampant, as it is in Argentina?
The country leads the world ranking of nations with hyper-negative real rates. What does that mean? That it is virtually unrewarding to be positioned in pesos, clearly encouraging higher inflation or the safekeeping of assets that will protect against rising prices (such as the dollar).
According to Compound Capital Advisors' CEO . . .