Benchmark Rate in Uruguay
Uruguay - Benchmark Rate
Central Bank increases M1+ target in April
At its 2 April monetary policy meeting, the Central Bank of Uruguay set its target for the growth rate of the M1+ money supply for the second quarter of 2019 to 8.0%–11.0%, up from the previous quarter’s 6.0%–8.0% target. The Bank also confirmed that the M1+ growth for the first quarter stood at 11.4%, which was well above the officials’ expectations, while the Central Bank kept its inflation target for the next 24 months unchanged at 3.0%–7.0%.
The Bank’s decision came against the backdrop of still elevated inflationary pressures (March: 7.8%; February: 7.5%), with inflation persistently trending above the Bank’s 3.0%–7.0% target in recent months. The decision also reflected volatile dynamics in the foreign exchange market, where the peso slipped notably against the U.S. dollar in March after largely holding its ground in the first two months of the year. As a result, and against the backdrop of rather soft economic activity, the Bank opted to take a moderately contractionary monetary policy stance, in order to bring inflation closer to the target range over the policy horizon and smoothen the economic cycle.
In its communiqué, the Bank indicated an improvement in inflation expectations, with the headline rate now projected to moderate to 7.25% by the end of the policy horizon. Nevertheless, risks to the outlook remain significant, stemming from the volatile external environment and upcoming general elections scheduled for November.
The next monetary policy meeting is scheduled for July.
Met the why particular analysts currently see money supply growing 9.0% in both 2019 and 2020.
Uruguay - Benchmark Rate Data
|Benchmark Interest Rate (%)||7.35||7.17||6.94||6.58||5.56|
5 years of economic forecasts for more than 30 economic indicators.
Uruguay Benchmark Rate Chart
Source: Central Bank of Uruguay.
|Exchange Rate||32.55||0.24 %||Jan 30|
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April 11, 2019
Industrial production fell 2.5% over the same month of the previous year in February, contrasting a 1.3% year-on-year rise in January.
April 4, 2019
Consumer prices rose 0.6% from a month earlier in March, moderating from February’s 1.0% month-on-month increase.
April 2, 2019
At its 2 April monetary policy meeting, the Central Bank of Uruguay set its target for the growth rate of the M1+ money supply for the second quarter of 2019 to 8.0%–11.0%, up from the previous quarter’s 6.0%–8.0% target.
March 28, 2019
According to detailed national accounts data released by the Central Bank of Uruguay (BCU) on 28 March, growth lost traction in the final quarter of last year, confirming analysts’ expectations.
March 14, 2019
Industrial production rose 1.3% year-on-year in January, swinging from a sharp 8.8% slump recorded in December.