Malbec-Making Central Banker Endangers Argentina’s Bonds
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Juan Carlos Fabrega, Argentina’s central bank president, is threatening to squander the confidence he’s earned in the bond market.
After ratcheting up interest rates to a decade high 28.9 percent in March to corral inflation and stem a plunge in foreign reserves used to pay bondholders, Fabrega has since cut borrowing costs three times in the past six weeks. The decision, which pushed rates back down below inflation, raised bondholder alarm that Argentina would revert to policies that caused prices to surge 37 percent in the past year.