Central Bank of Uruguay decides to keep monetary policy rate at 9¼%

By Caroline Salls

Pittsburgh, March 22 - The Central Bank of Uruguay has decided to keep its monetary policy rate at 9¼%, according to a news release.

The bank said the macroeconomic coordination committee feels there is still a clear tone of global economic uncertainty, with weak recovery in the North American region and further turmoil in Europe.

The bank said international interest rates continue to be extremely low in the emerging markets. Although the growth of this group of countries has declined, the bank said prices of basic commodities remain high, and demand is consistent.

According to the release, the Uruguayan economy is growing at reasonable rates, which are better than the levels seen internationally.

Although this results in an equilibrium between exports of goods and services, private investment and strong domestic demand, the bank does not mitigate inflationary impulse at the desired pace.

The bank said inflation is a major concern on the risk map of the Uruguayan economy, with price stability being a precondition to projecting achievements in competitive growth, welfare and equity.

Both the actual inflation rate and the expectations of agents, although lower than the current rate, remain well above the target range, the bank said.

The bank said it will continue to monitor the global and domestic situation until its next meeting scheduled for June.

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