Uruguay Interest Rate

The Central Bank of Uruguay reduced its policy rate by 25 bps to 8.00% in November 2025, moderating its contractionary bias and moving gradually toward a neutral policy stance. Inflation stood at 4.32% in October, remaining around the 4.5% objective for the fifth consecutive month, while core inflation eased to 4.7% as most components decelerated over the quarter. The BCU’s projections show short-term inflation forecasts broadly stable versus the previous Copom and converging below 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 two-year average stood at 4.98%, with market and analyst projections near 4.75% and 4.7%, and said it would continue its cycle of rate cuts toward neutrality if domestic conditions, inflation developments and expectations continue to evolve as projected.