Central Bank of Uruguay president highlights monetary credibility and stability at Central Bank of Chile conference

The Central Bank of Uruguay published remarks by its president, Guillermo Tolosa, from the XXVIII Annual Conference of the Central Bank of Chile, where he emphasised the importance of monetary credibility and a solid policy framework for open economies amid global uncertainty. Tolosa participated in a panel on future challenges for central banking in the region, covering issues including United States macroeconomic cycles, foreign exchange interventions, and international uncertainty. He noted that, despite recent international tensions and disruptions to global value chains, imported inflation in the region has evolved better than expected. He also pointed to Uruguay’s progress toward persistently low inflation while arguing that remaining credibility challenges are linked to past shortcomings in de jure central bank independence, which he associated with systematically higher nominal interest rates over two decades and adverse effects on credit, indebtedness, monetary policy transmission, and macroeconomic stabilisation. He added that the central bank is changing its communications approach, citing research suggesting that greater exposure to central bank communication, clearer narratives, and more visual components increase the likelihood that the public acts in line with the central bank’s expectations.