Benchmark Rate in Uruguay
Uruguay - Benchmark Rate
Central Bank raises M1+ target to help the recovery
At its 25 June monetary policy meeting, the Central Bank of Uruguay increased its target for the growth rate of the M1+ money supply in Q3 2020 to 7.0%–10.0%, from the previous quarter’s target of 3.0%–5.0%. The Bank also communicated that M1+ growth for the fourth quarter stood at 11.0%, which was well above officials’ expectations, and kept its inflation target for the next 24 months unchanged at 3.0%–7.0%.
The higher-than-expected growth in M1+ in Q2 was due to precautionary reasons pushing businesses and consumers to hoard money in the face of the uncertain economic outlook amid the health crisis. Meanwhile, inflationary pressures intensified notably, despite lower price pressures for untradeable goods, as FX passthrough translated into higher prices for imports. The Bank’s decision to increase the target for liquidity in Q3 stemmed from the need to sustain a recovery in economic activity, despite elevated inflationary pressures.
Policy easing in the near-term is therefore to be expected as the Bank is committed to supporting the economy. In its communiqué, the Bank stated that once economic activity begins to recover, it will start absorbing liquidity so as to bring inflation within the 3.0%-7.0% target range.
The next monetary policy meeting is scheduled for September.
Uruguay - Benchmark Rate Data
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Benchmark Interest Rate (%) | 6.94 | 6.58 | 5.56 | 5.30 | 5.86 |
Uruguay Benchmark Rate Chart
Source: Central Bank of Uruguay.
Uruguay Facts
| Value | Change | Date | |
|---|---|---|---|
| Exchange Rate | 37.33 | 0.24 % | Jan 01 |
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Economic News
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Uruguay: Inflation drops in July
August 5, 2020
Consumer prices increased 0.55% from the previous month in July, accelerating from June's 0.02% increase.
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Uruguay: Industrial output tumbles at sharp pace amid containment measures in May
July 14, 2020
Industrial production nosedived 19.6% year-on-year in May (April: -19.3% yoy).
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Uruguay: Inflation recedes in June
July 6, 2020
Consumer prices were unchanged from a month earlier in June, following the 0.6% increase recorded in May.
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Uruguay: Central Bank raises M1+ target to help the recovery
June 26, 2020
At its 25 June monetary policy meeting, the Central Bank of Uruguay increased its target for the growth rate of the M1+ money supply in Q3 2020 to 7.0%–10.0%, from the previous quarter’s target of 3.0%–5.0%.
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Uruguay: Economy contracts at sharpest rate in over 16 years in Q1 amid adverse external backdrop
June 22, 2020
The economy slumped 1.4% year-on-year in the first quarter of 2020, after expanding 0.2% in the fourth quarter of last year, recording the worst contraction since Q2 2003.
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