The Central Bank of Uruguay published remarks by its president, Guillermo Tolosa, from a presentation to the Union of Exporters of Uruguay’s board, arguing that the disinflation phase has largely concluded with inflation near the target on a sustainable basis. With inflation expectations at historical lows, the central bank has been lowering interest rates and is moving toward a neutral monetary policy stance, while also outlining its plan to reduce dollarisation in the economy. Tolosa highlighted that disinflation has been broader-based than in the past, with non-tradable inflation at a historical low, which he linked to safeguarding both purchasing power and competitiveness. He also pointed to export productivity gains as a driver of strong export growth, supporting higher levels of purchasing power in USD over the long term without compromising external balances. On the exchange rate, he noted that the USD price in Uruguay remains above levels seen between October 2022 and August 2024, and that recent declines have mirrored global dollar movements; annual depreciation through July ran systematically above inflation, and the multilateral real exchange rate showed improved competitiveness compared with the mid-2022 to 2024 period.
Central Bank of Uruguay 2025-09-18
Central Bank of Uruguay signals inflation at target and a move toward neutral monetary policy while detailing de-dollarisation plan
The Central Bank of Uruguay's president, Guillermo Tolosa, stated that disinflation is largely complete, with inflation near target and expectations at historical lows, prompting a shift to a neutral monetary policy. The bank plans to reduce dollarisation, while export productivity gains have bolstered export growth and purchasing power in USD. Tolosa noted that the USD price remains above previous levels, with recent declines reflecting global trends and improved competitiveness in the multilateral real exchange rate.