Uruguay: Central Bank holds rates
March 22, 2013
At its latest meeting on 22 March, the Central Bank left the monetary policy rate unchanged at 9.25%. The decision follows a 25 basis-point rise in the previous meeting held in December last year.
In its accompanying statement, the Bank mentioned that its decision takes into consideration the recent increase in the reserve requirement ratio and that it was taken with the aim of maintaining a "balance of objectives", in a context of declining competitiveness and capital inflows towards emerging economies. Regarding price developments, monetary authorities eased their tone somewhat and stated that inflation is now one of their "main concerns" and no longer the "centre of risks" as mentioned in its previous statement. That said, the Bank stated that both inflation as well as inflation expectations remain "notably above" the target range. The next policy meeting is scheduled for June.
FocusEconomics Consensus Forecast participants expect the policy rate to end 2013 at 9.11%. For 2014, panellists see the monetary policy rate at 8.39%.