01.07.202620:54:37UTC+00Uruguay Holds Key Interest Rate

The Central Bank of Uruguay left its policy rate unchanged at 5.75% at its June 2026 meeting, citing projections that still place inflation on a trajectory toward convergence with its 4.5% target over the monetary policy horizon. Inflation expectations also remained in line with the bank’s objective.

Annual inflation accelerated to 3.77% in May, driven mainly by higher administered prices—particularly in the energy sector—reflecting the impact of global supply shocks. Core inflation inched up to 3.6%, although policymakers emphasized that they have not observed significant second-round effects.

Easing geopolitical tensions in the Middle East helped lower global financial volatility and reduce pressure on energy prices. At the domestic level, labor market and income indicators remained solid, and economic activity continued to expand.

The central bank indicated that inflation is likely to rise in the short term, but assessed that the balance of risks over the policy horizon remains broadly balanced. It reiterated that future policy decisions will be guided by incoming inflation data and its underlying dynamics.