The Board of the Central Bank of Uruguay (BCU) unanimously left the policy rate (Tasa de Política Monetaria) unchanged at 5.75 percent, judging that two-year inflation forecasts remain anchored near the 4.5 percent target while April headline and core inflation, at 3.16 percent and 3.45 percent respectively, continue their convergence toward that goal amid a rebound in first-quarter activity and employment and a still-moderate growth outlook for the remainder of 2026. Following cumulative cuts of 325 bp since October 2025—including a 100 bp reduction in January and a move to 5.75 percent before April—the rate has now been held steady for a second meeting. The committee reaffirmed that the current stance supports further disinflation and expectation anchoring, but warned that the inflation risk balance has shifted “slightly upward” as Middle East conflict keeps energy prices elevated and rising global long-term yields tighten financial conditions for emerging markets. The central bank will monitor these risks closely and stands ready to adjust policy if needed.
Central Bank of Uruguay2026-05-26
Central Bank of Uruguay leaves policy rate unchanged at 5.75%
Central Bank of Uruguay kept the Tasa de Política Monetaria at 5.75 % for a second straight meeting after 325 bp of cumulative cuts since Oct 2025, citing anchored two-year inflation expectations at the 4.5 % target and ongoing disinflation. The Board noted a slight uptick in inflation risks from higher energy prices and tighter global yields and signalled readiness to act if needed.