Uruguay Lifts Key Rate to 9.25%, Signals Hawkish Policy

Uruguay Lifts Key Rate to 9.25%, Signals Hawkish Policy

Uruguay’s central bank raised its benchmark interest rate Tuesday to 9.25%, sending a hawkish signal about lowering consumer price increases and inflation expectations to its 4.5% target.

The Central Bank of Uruguay (BCU) is preparing for a crucial meeting of the Monetary Policy Committee (Copom), in which the future of the Monetary Policy Rate (MPR) will be decided, with the expectation of a new rise on the horizon. This will be the first meeting of the Copom in the new period of government under the leadership of Guillermo Tolosa, who assumed as president of the BCU with the commitment to stabilize inflation at 4.5%, following …