The Central Bank of Uruguay’s president, Guillermo Tolosa, spoke at the International Monetary Fund Spring Meetings’ Governor Talks for the first time for a BCU chair, setting out Uruguay’s experience in conducting monetary policy and the role of communication in strengthening credibility and anchoring inflation expectations. Tolosa pointed to the historical challenge of de-anchored inflation expectations even in the absence of shocks, which became self-fulfilling. In environments with weakened monetary transmission, he argued that the public cannot be left out of the stabilization process, and that stronger communication backed by a consistent track record can reduce the burden placed on the policy rate to achieve the same objectives. He also underscored that the BCU has chosen to treat communication as a central function of monetary policy, framing it as a complement to policy decisions that can reduce surprises and volatility by turning the policy framework into shared knowledge.
Central Bank of Uruguay 2026-04-14
Central Bank of Uruguay president highlights communication as a core tool for anchoring inflation expectations at IMF Governor Talks
The Central Bank of Uruguay’s president, Guillermo Tolosa, used his first appearance at the IMF Spring Meetings’ Governor Talks to outline Uruguay’s monetary policy experience and the role of communication in strengthening credibility and anchoring inflation expectations. He highlighted the challenge of historically de-anchored expectations and argued that robust, transparent communication, supported by a consistent track record, is treated as a core monetary policy tool to complement rate decisions, reduce surprises and volatility, and involve the public in stabilization.