The recent increase in Malaysia's interest rate to 3% has somewhat affected some people who are struggling with loan payments.
But without realizing the situation in Argentina is actually terrible, where the interest rate has just been raised up to 97%!
Why so high?
First of all, we cannot differentiate between the economic situation of Malaysia and Argentina because the situation is very different!
Of course, the inflation rate in Argentina has reached 109% in April which is the highest level since the early 1990s, where it reached 20,262.80%!
When compared to the United States, inflation is now below 5% after the Federal Reserve raised the key interest rate to 5.25%.
But currently, Argentina is behind Venezuela and Zimbabwe which have higher inflation, according to the International Monetary Fund (IMF).
Following the move, Argentina's central bank hopes the rate hike will incentivize investment in the country's currency.
Hyperinflation resulted in a large outflow of investments held in the Argentine peso leading to a 23% decline in its value against the US dollar this year.
