BCU keeps policy rate steady at 5.75%

The Central Bank of Uruguay (BCU) kept its policy rate (TPM) unchanged at 5.75 % on 21 April, judging the existing stance adequate to steer headline inflation—down to 2.94 % in March, near the 3 % floor of the 3–6 % tolerance band—back toward the 4.5 % target and to keep expectations anchored even as core inflation quickened to 3.5 %. The hold follows a cumulative 350 bp of easing since April 2025, most recently in January 2026, that shifted policy into an expansionary setting. First-quarter activity indicators point to an upturn led by private consumption, while two-year inflation expectations remain at 4.5 % for analysts and primary dealers and 5 % for firms. The committee cited exceptional global uncertainty, elevated commodity-price and currency volatility, and oil prices above pre-conflict levels, all of which are feeding worldwide cost pressures. Central bank projections envisage upward price pressures over the coming year but still see inflation remaining within the tolerance band and converging to target in the policy horizon. Policymakers said the current stance leaves them well positioned to counter emerging risks and pledged ongoing close monitoring to guide future decisions.