Uruguay Cuts Key Rate to 8%, Flags More Easing Ahead

Uruguay extended its easing cycle by lowering the benchmark interest rate a quarter point to 8% and signaled its willingness to further lower borrowing costs.

The central bank said monetary policy continues to have a contractive bias. Policymakers have lowered borrowing costs by 125 basis points since kicking off the current easing cycle with a quarter point cut in July. Inflation has remained around the 4.5% target for five consecutive months.