A deteriorating international scenario and financial market uncertainty that is affecting inflation expectations led the board of directors to unanimously approve the rate increase. — Bloomberg
MONTEVIDEO: Uruguay’s central bank surprised markets with a quarter-point interest rate hike on Monday, citing an uptick in underlying inflation and long-term inflation expectations.
Uruguay’s first interest rate increase in two years lifted the benchmark rate to 8.75%, surprising all five analysts surveyed by Bloomberg, who expected the bank to remain on hold for an eighth straight month at 8.5%.
