Uruguay Maintains Policy Rate at 8.5% for 3rd Session

2024-08-16 20:40 By Felipe Alarcon 1 min. read

The Central Bank of Uruguay opted to maintain its benchmark policy rate at 8.5% during its August 2024 meeting, continuing unchanged for the third consecutive session, aiming to sustain the downward trend in inflation toward the 4.5% target within the Monetary Policy Horizon.

In July, annual inflation was 5.45%, marking 14 consecutive months within the target range, the longest period since the inflation targeting regime began.

Core inflation rose to 4.6% due to higher prices in certain manufactured goods and services.

Despite a slight inflation rise expected in August, projections indicate a return to within the target range.

Globally, economic activity showed signs of slowing, while Uruguay's growth is driven by private consumption and external demand recovery.

The BCU views the current policy as effective in keeping inflation aligned with its goals.



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