Uruguay Interest Rate

The Central Bank of Uruguay kept its policy rate at 9.25% in May 2025, the highest since 2023, to support the ongoing convergence of inflation toward the 4.5% target. Inflation stood at 5.36% in April, within the 3–6% tolerance range for the 23rd straight month. Core inflation remains near the upper bound, indicating persistent price rigidities. Analysts’ two-year inflation expectations fell from 5.8% to 5.5%, and market expectations dropped from 6.1% to 5.3%. The BCU’s short-term forecast shows slightly stronger disinflation than previously expected, potentially meeting the 4.5% goal within 12 months. However, weak local activity and global uncertainty weighed on the outlook. Despite lower inflation expectations, the central bank cited elevated core inflation and still-high projections as reasons to maintain its contractionary stance and keep the benchmark rate steady.