Thursday, March 24, 2011

Uruguay Central Bank Increases Rate 100bps to 7.50%

The Banco Central Del Uruguay raised its benchmark rate 100 basis points to 7.50% from 6.50% previously, citing "concerns about the risk implied by the evolution of inflation, in a context of elevated growth,". The Bank also said "The central bank's monetary policy committee has watched with concern the trend of inflation in recent months, which has exceeded the target range," and on commodity prices said: "International prices continue rising in a global context of greater volatility and domestic factors are keeping internal prices on an upward trajectory.". Uruguay reported inflation of 7.67% in February, up from 7.27% in January this year.


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