Uruguay Cuts Key Rate to 7.5% With Inflation Below Target

Uruguay’s central bank surprised investors with a half-point reduction in borrowing costs that left the benchmark interest rate at 7.5% after months of below-target inflation.

Policymakers have slashed the key rate by 175 basis points since policymakers launched the current easing cycle in July. Financial institutions surveyed this month by the central bank expected a 25-basis-point reduction.