The Central Bank of Uruguay reduced its policy rate by 50 bps to 8.25% in October 2025, moderating its contractionary bias and moving gradually toward a neutral policy stance. Inflation stood at 4.25% in September, remaining around the 4.5% objective for the fourth consecutive month, while core inflation eased to 5.0% as most components decelerated over the quarter. The BCU’s projections show inflation evolving slightly below previous projections but converging to the 4.5% target over the policy horizon, even after a modest downward revision to activity due to regional conditions. The Board emphasized the consolidation of inflation around the target and the sustained decline in expectations, and said it would continue its cycle of rate cuts toward neutrality if domestic conditions, inflation developments and expectations, particularly business expectations, continue to evolve as projected.
Reprinted from tradingeconomics，the copyright all reserved by the original author.
Disclaimer: The views expressed are solely those of the author and do not represent the official position of Followme. Followme does not take responsibility for the accuracy, completeness, or reliability of the information provided and is not liable for any actions taken based on the content, unless explicitly stated in writing.
Leave Your Message Now