Ex-IMF director urges Milei to cut rates, allow peso depreciation to exit recession
Claudio Loser, former IMF director, publicly advises Argentina's President Milei to lower interest rates and permit greater dollar appreciation to stimulate activity and exit recession. He also flags rising country risk and competitiveness loss, adding external pressure on Argentina's policy mix. The advice signals potential policy debate but no official action yet.
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Argentina — 97 developments
Argentina: Milei Rejects Devaluation Amid External Pressure
Argentine President Milei has publicly reaffirmed his anti-devaluation stance, framing exchange-rate adjustments as detrimental to employment and poverty reduction. This position is maintained despite external advice from a former IMF director advocating for peso depreciation and interest rate cuts to stimulate economic activity and address rising country risk. The situation indicates a continued commitment to current fiscal policy amidst ongoing debate regarding optimal economic strategy.