Uruguay raises interest rate to 9.25%, anticipates at least two more hikes

The Central Bank of Uruguay signaled the entry into a "contractionary phase" of monetary policy. The regulator seeks to anchor inflationary expectations, still far from the target range between 3% and 6% from September.

RIO DE JANEIRO, BRAZIL - On May 17, the Central Bank of Uruguay (BCU) decided to increase the reference rate by 75 basis points to 9.25%. The decision of a seventh consecutive increase was communicated after the meeting of the regulator's Monetary Policy Committee (Copom); at the same time, the institution anticipated at least two new 50 basis point increases in upcoming meetings in the "gradual" entry into a "contractionary phase" of monetary policy.

"This increase allows . . .

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