By Eliana Raszewski for Businessweek.com
Dec. 30 (Bloomberg) -- Argentina’s central bank plans to keep injecting cash into the economy at the current pace, a move that may further stoke inflation that’s already among the fastest in the world.
The bank, in its 2012 monetary program published yesterday, said it aims to expand the M2 money supply, which includes cash plus checking and savings accounts, by 26.4 percent in 2012. This year it targeted 28 percent monetary growth.
South America’s second-biggest economy should expand for a 10th straight year in 2012, by between 4.5 percent and 7.5 percent, the bank said.
“The bank is not fighting inflation and there’s a risk of inflation shooting up” if the money supply continues to grow at the current pace, said Fausto Spotorno, an economist at Buenos Aires-based Orlando Ferreres & Asociados in Buenos Aires.