Venezuela launches two-pronged inflation attack

Venezuela's central bank is raising interest rates and reserve requirements for banks in an effort to stem inflation. "These measures seek to provide incentives for national saving and adjust liquidity levels, with the goal of growing in a more stable environment," the central bank president, Gaston Parra Luzardo, said on 11 July.

Venezuela, which was the world's sixth-biggest oil exporter in 2006, is experiencing the highest inflation in Latin America. Price controls have also discouraged in