Central Bank of Uruguay: Facts and Insights

The Central Bank of Uruguay is the country's monetary authority, responsible for maintaining the stability of the Uruguayan peso. It was established in 1967.

The bank's headquarters are located in Montevideo, the capital city of Uruguay. The Central Bank of Uruguay is a member of the Latin American Reserve Fund and the Inter-American Development Bank.

The bank's main objective is to maintain price stability and promote economic growth. It does this by setting monetary policy, regulating the financial system, and acting as a lender of last resort.

The Central Bank of Uruguay has a strong reputation for stability and soundness, which has earned it a high credit rating.

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The Central Bank of Uruguay was established on July 6, 1967, as an autonomous state entity, marking a significant step in the country's financial history.

The Central Bank of Uruguay is headquartered in Ciudad Vieja, Montevideo, where you can find the Numismatic museum, showcasing Uruguayan coins and banknotes, as well as foreign ones.

Uruguay's Central Bank has been responsible for managing and supervising the banking system since its creation, taking over from the department of the Banco de la República Oriental del Uruguay.

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The Central Bank of Uruguay was established on July 6, 1967, as an autonomous state entity. This marked a significant shift from the department of the Banco de la República Oriental del Uruguay, which previously handled the issuing of currency and banking system supervision.

Prior to 1967, the banking system was managed by the department of the Banco de la República Oriental del Uruguay. This was the case until the Central Bank of Uruguay was created.

The Central Bank's responsibilities expanded significantly on March 30, 1995, with the passing of Law 16,696. This law set out the bank's management structure, functions, and responsibilities.

The headquarters of the Central Bank is located in Ciudad Vieja, Montevideo, and houses the Numismatic museum.

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The BCU raised the TPM benchmark interest rate from 8.5% to 8.75% in a move to make inflation and expectations meet at 4.5% annually over the last 24 months. This was the first change to the TPM since April.

The Committee noted that year-on-year inflation stood at 5.03% in November, completing a year and a half within the target range. Core inflation, however, registered an increase for the second consecutive month and was above 'headline' inflation.

The BCU also pointed out that the international scenario shows a deterioration in the outlook for activity, due to the lower growth of advanced economies. Inflation maintains its persistence in the core component.

Uruguay's economy grew by 4.1% year-on-year in the third quarter of the year, while average annual growth is expected to be around 3.4% for 2024. The BCU's Expectations Survey noted that Uruguay's economy is forecast to grow by 3.1% in 2024, a slight improvement from November's 3%.

The BCU's decision to raise the interest rate was also influenced by the US Federal Reserve reducing the interest rate for the third consecutive meeting.

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Uruguay's Central Bank, BCU, has maintained its policy rate at 8.5% for the third month in a row, aiming to keep inflation downwards and on track to meet the 4.5% Monetary Policy Horizon.

This decision was made after the Monetary Policy Committee (Copom) met, led by BCU's new president, Washington Ribeiro.

The BCU announced that Uruguay's year-over-year inflation in July stood at 5.45%, completing 14 consecutive months within the target range.

Uruguay's core inflation reached 4.6% in July, following a surge in the price of some manufactured goods and tradable services.

The average inflation expectations for the Monetary Policy Horizon dropped in July to 5.94%, fitting within the target range for the first time.

The BCU's short-term projections suggest inflation would grow in August and then start to decline, remaining within the target range and converging to the Monetary Policy Horizon.

The BCU's Board of Directors decided to keep the rate at 8.5%, a figure consistent with its plans to consolidate inflation within the target range and in line with financial market forecasts.

The level of activity in the second quarter showed signs of deceleration in a context of greater financial volatility.

Inflation in the United States went down above expectations amid some weaknesses in the latest labor market data, while in Uruguay, activity continues to show signs of growth driven by private consumption and the recomposition of external demand.

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Uruguay's economy is forecast to grow by 3.1% in 2024, a slight improvement from November's 3%, according to the BCU's Expectations Survey.

Uruguay's economy expanded by 4.1% year-over-year in the third quarter of 2024, and totals 2.9% so far this year.

The BCU has held the rate steady at 8.5% since April, previously lowering it from 9% to its current level.

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The Central Bank of Uruguay (BCU) has maintained its monetary policy rate at 8.5% for several months, including in April, when it was lowered from 9%.

In July, the BCU's Monetary Policy Committee decided to keep the rate at 8.5% for the third month in a row, citing the need to keep inflation downwards and on track to meet the 4.5% Monetary Policy Horizon.

Uruguay's year-on-year inflation in July stood at 5.45%, marking 14 consecutive months within the target range.

The BCU also noted that core inflation reached 4.6%, following a surge in the price of some manufactured goods and tradable services.

In November, the BCU raised the TPM benchmark interest rate from 8.5% to 8.75% to make inflation and expectations meet at 4.5% annually over the last 24 months.

The BCU's Monetary Policy Committee has held the rate steady at 8.5% since April, previously lowering it from 9% to its current level.

Uruguay's economy grew by 4.1% year-on-year in the third quarter of 2024, while average annual growth is expected to be around 3.4% for 2024.

The BCU's Board decided to keep the policy rate at 8.5% in September, aiming to maintain inflation control and economic stability.

Uruguay's annual inflation rate dropped to 5.32% in September, marking the 16th consecutive month within the target range.

The BCU considers this the longest period of stable inflation since implementing their current policy.

The BCU's Monetary Policy Committee views the current policy as effective, with inflation hovering around the center of the target range as a positive sign.

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