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Uruguay Lifts Interest Rate to 10.25%, Sees More Hikes Ahead

  • Central bank hikes key rate 50 bps for second straight meeting
  • Policy makers signal more 50 bps hikes later in the year

Uruguay’s central bank raised its key interest rate for a ninth consecutive meeting to 10.25% with inflation expectations remaining stubbornly above its target. 

Policy makers tightened by 50 basis points and signaled more half point hikes later in the year. The increase Monday marked the first time the central bank lifted borrowing costs into the double digits since it returned to using a benchmark rate as its main policy tool in September 2020.