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Argentina’s central bank board said it agreed to hike the country’s benchmark interest rate by 300 basis points to 78% on Thursday after annual inflation hit 100% for the first time in over three decades.

The decision came after 12-month inflation reached 102.5% in February, the first time it has hit triple figures since a period of hyperinflation in 1991. Prices rose 6.6% in the month, ahead of forecasts.

The sharp hike is the first since September, when the bank raised the 28-day Leliq rate by 550 basis points to 75%, the last in a vicious tightening cycle all through 2022. It had wanted to cut rates this year on hopes inflation would cool.

However, inflation has accelerated again despite government attempts to cap retail prices, pushed up in part by a devastating drought that is hammering grains and meat supply.

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