Uruguay Cuts Benchmark Rate to 8.75% With Inflation on Target
The Central Bank of Uruguay has reduced its benchmark interest rate to 8.75%, continuing its easing cycle. This decision comes after two consecutive months of inflation being close to the bank's target rate. The rate cut is aimed at supporting the Uruguayan economy, which has seen a slowdown in recent months. The bank has stated that the current inflation rate is within their target range, allowing them to make this adjustment to the monetary policy. This move is expected to provide some relief to businesses and consumers in Uruguay, as it will make borrowing more affordable and potentially stimulate economic activity. However, the central bank will need to closely monitor the situation to ensure that the rate cut does not lead to a surge in inflation that could undermine the country's economic stability.
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