Uruguay’s Ministry of Economy and Finance reported that Minister Gabriel Oddone and senior officials attended the swearing-in of the new authorities of the Central Bank of Uruguay (BCU), whose Board will be chaired by Guillermo Tolosa. In his inaugural address, Tolosa reaffirmed the inflation-targeting regime, using the interest rate as the main tool and maintaining a freely floating exchange rate, with an initial objective of achieving “decisive convergence” of inflation to 4.5% per year before moving it to lower international standards. Tolosa said recent inflation has been particularly low by historical standards but remains high in international comparison, and that market inflation expectations are still not converging to the BCU’s 4.5% target. He added that, as progress is made on this agenda, the intention during the current government period is to reduce the target below 4.5% to improve living costs, credit costs and competitiveness, and he also highlighted the importance of maintaining confidence in the financial system. The ceremony also marked the transition from outgoing president Washington Ribeiro, who was acknowledged for his role during the handover.

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