Uruguay Monetary Policy Rate

The Central Bank of Uruguay reduced its policy rate by 50 bps to 7.50% in December 2025, moderating its contractionary bias and moving gradually toward a neutral policy stance. Inflation stood at 4.1% in November, remaining below the 4.5% objective, while core inflation eased to 4.3%. The BCU’s projections show short-term inflation forecasts revised down versus the previous Copom and declining in the coming months, converging below the 4.5% target over the policy horizon amid weaker domestic import prices and a modest downward revision to activity due to regional conditions. The Board emphasized the consolidation of inflation around the target, with market and analyst expectations declining to about 4.6% and the average of expectations including firms falling to 4.9%, and said it would continue its cycle of rate cuts toward neutrality if domestic conditions, inflation developments and expectations continue to evolve as projected.

The Central Bank of Uruguay reduced its policy rate by 25 bps to 8.00% in November 2025, moderating its contractionary bias and moving gradually toward a neutral policy stance. Inflation stood at 4.32% in October, remaining around the 4.5% objective for the fifth consecutive month, while core inflation eased to 4.7% as most components decelerated over the quarter. The BCU’s projections show short-term inflation forecasts broadly stable versus the previous Copom and converging below the 4.5% target over the policy horizon, even after a modest downward revision to activity due to regional conditions. The Board emphasized the consolidation of inflation around the target and the two-year average stood at 4.98%, with market and analyst projections near 4.75% and 4.7%, and said it would continue its cycle of rate cuts toward neutrality if domestic conditions, inflation developments and expectations continue to evolve as projected.

The Central Bank of Uruguay reduced its policy rate by 50 bps to 8.25% in October 2025, moderating its contractionary bias and moving gradually toward a neutral policy stance. Inflation stood at 4.25% in September, remaining around the 4.5% objective for the fourth consecutive month, while core inflation eased to 5.0% as most components decelerated over the quarter. The BCU’s projections show inflation evolving slightly below previous projections but converging to the 4.5% target over the policy horizon, even after a modest downward revision to activity due to regional conditions. The Board emphasized the consolidation of inflation around the target and the sustained decline in expectations, and said it would continue its cycle of rate cuts toward neutrality if domestic conditions, inflation developments and expectations, particularly business expectations, continue to evolve as projected.