Money in Uruguay
Uruguay - Money
Central Bank lowers M1+ target in December
At its 26 December monetary policy meeting, the Central Bank of Uruguay lowered its target for the growth rate of the M1+ money supply in Q1 2020 to 6.0%–8.0%, from the previous quarter’s target of 7.0%–9.0%. The Bank also communicated that M1+ growth for the fourth quarter stood at 7.6%, which was in line with officials’ expectations, and kept its inflation target for the next 24 months unchanged at 3.0%–7.0%.
Stubbornly high inflation, expectations of persistently elevated inflation and continued volatility in the FX market all drove the Bank’s decision to slightly tighten the monetary policy stance in December. The Bank’s decision came against the backdrop of some recovery in economic activity, a sliding peso and elevated inflationary pressures. Inflation inched up from October’s 8.3% to 8.4% in November, thus moving further above the upper bound of the Central Bank’s 3.0%–7.0% target range.
Policy easing in the near-term remains unlikely as the Bank is committed to bringing inflation to within the target range. In its communiqué, the Bank remained somewhat cautious on the prospects of an economic improvement in the short-term, chiefly due to an unfavorable external backdrop and political and economic uncertainty in Argentina. However, it also remarked that progress made in the adoption of structural reforms in Brazil could translate into a more promising external outlook for Uruguay’s economy.
The next monetary policy meeting is scheduled for April.
FocusEconomics analysts currently see the money supply growing 9.0% in both 2020 and 8.0% in 2021.
Uruguay - Money Data
|Money (annual variation in %)||-||-||-||-||-|
5 years of economic forecasts for more than 30 economic indicators.
Uruguay Money Chart
Source: Central Bank of Uruguay and FocusEconomics calculations.
|Exchange Rate||37.33||0.24 %||Jan 01|
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
February 12, 2020
Industrial production expanded 3.8% in annual terms in December, contrasting November’s 1.8% drop.
February 6, 2020
Consumer prices surged 2.1% a month earlier in January, following a flat reading in the last month of 2019.
January 14, 2020
Consumer prices were flat from a month earlier in December, down from November’s 0.4% increase.
January 13, 2020
Industrial production dropped 1.8% in annual terms in November, a softer contraction than October’s 7.9% plunge.
December 26, 2019
At its 26 December monetary policy meeting, the Central Bank of Uruguay lowered its target for the growth rate of the M1+ money supply in Q1 2020 to 6.0%–8.0%, from the previous quarter’s target of 7.0%–9.0%.