The Central Bank of Uruguay held its monetary policy rate at 5.75% on July 1, 2026, saying its projections still place inflation on a path of convergence to the 4.5% target over the monetary policy horizon and that inflation expectations remain aligned with that objective, with the decision taken unanimously as recent supply shocks were assessed as temporary and without significant second-round effects. In May, headline inflation rose to 3.77%, mainly due to administered prices linked to energy, while core inflation edged up to 3.6%; at the same time, 24-month analyst expectations remained at 4.5%, financial market expectations increased slightly to 4.67%, and firms’ expectations stayed at 5%. On the domestic side, labour market and income indicators continued to show some dynamism, while economic activity grew 0.8% in the first quarter, driven by private consumption, and the central bank maintained its projection for moderate growth because of the drought’s effects on agriculture. Internationally, easing geopolitical tensions in the Middle East helped moderate global financial volatility and pressure on energy prices. The central bank said inflation should rise modestly and temporarily above target in the near term before gradually converging to 4.5%, assessed the risk balance as even over the monetary policy horizon, and said future decisions will depend on inflation, inflation expectations and the balance of risks.
Central Bank of Uruguay2026-06-30
Central Bank of Uruguay holds monetary policy rate at 5.75%
The Central Bank of Uruguay unanimously kept its monetary policy rate at 5.75% on July 1, 2026, saying inflation remains on a path to converge to the 4.5% target over the policy horizon, with recent supply shocks seen as temporary and without significant second-round effects. It said inflation may rise modestly and temporarily above target in the near term before gradually converging to 4.5%, while future decisions will depend on inflation, inflation expectations and the balance of risks.