Uruguay Monetary Policy Rate

The Central Bank of Uruguay kept its policy rate unchanged at 5.75% at its July 2026 meeting, noting that its inflation projections and agents’ expectations remain aligned with the 4.5% target over the Monetary Policy Horizon. The bank noted that inflation stood at 4.27%, while core inflation showed a moderate increase without evidence of second-round effects from recent external shocks. Meanwhile, two-year inflation expectations remained aligned with the target. The international environment continues to be characterized by high uncertainty stemming from geopolitical tensions surrounding the conflict in the Middle East and its impact on commodity prices. In Uruguay, economic activity is evolving below potential growth, while the labor market remains relatively stable. The Monetary Policy Committee assessed that the current policy stance remains appropriate to preserve price stability and keep expectations anchored to the target over the monetary policy horizon.

The Central Bank of Uruguay kept its policy rate unchanged at 5.75% at its June 2026 meeting, as its projections continue to place inflation on a path toward convergence with the 4.5% target over the monetary policy horizon. Inflation expectations also remained aligned with the central bank’s objective. Annual inflation rose to 3.77% in May, driven by higher administered prices, particularly energy, reflecting the impact of global supply shocks. Core inflation edged up to 3.6%, though policymakers noted no significant second-round effects. Easing geopolitical tensions in the Middle East reduced global financial volatility and pressure on energy prices. Labor market and income indicators remained resilient, while economic activity continued to expand. The central bank said inflation is likely to rise in the short term, but the balance of risks remains broadly balanced over the policy horizon. Future policy decisions will depend on incoming inflation data and its underlying dynamics.

The Central Bank of Uruguay kept its benchmark interest rate unchanged at 5.75% at its May 2026 meeting, aiming to ensure inflation converges to the 4.5% target and to keep expectations anchored. Annual inflation stood at 3.16% in April, while core inflation reached 3.45%, continuing the convergence process toward the target. Two-year inflation expectations from analysts and financial markets remained anchored at 4.5%, while companies’ expectations stood at 5%, bringing the overall average to 4.67%. Globally, persistent conflict in the Middle East continued to keep energy prices elevated and volatile, while higher long-term interest rates created a less favorable environment for emerging markets. Domestically, available indicators pointed to a recovery in economic activity and employment in the first quarter, with moderate growth expected for the rest of the year. Still, the central bank noted that inflation risks had shifted slightly to the upside due to persistently high oil prices.