Uruguay's Central Bank Holds Key Interest Rate at 5.75%

2026-05-26 20:31 By Isabela Couto 1 min. read

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.



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Uruguay's Central Bank Holds Key Interest Rate at 5.75%
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.
2026-05-26
Uruguay Keeps Key Rate at 5.75%
The Central Bank of Uruguay keeps its policy rate at 5.75% in April 2026, aiming to drive inflation toward the 4.5% annual target amid high global uncertainty. Inflation stood at 2.94% in March, hitting the floor of the tolerance range due to falling food prices, while core inflation accelerated to 3.5%. Economic activity shows signs of improvement in the first quarter, driven by private consumption. BCU projections suggest inflation will face upward pressure next year due to volatile oil prices and logistics costs stemming from the Middle East conflict. However, with analyst expectations anchored at 4.5% and firms at 5%. The Board emphasized that monetary policy is in a solid position to monitor international risks and ensure inflation converges to the target as projected.
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