LatinNews Daily - 04 March 2026

*Uruguay’s central bank (BCU) has lowered the country’s benchmark interest rate by 75 basis points, bringing it down to 5.75%, continuing the rate-cut cycle which began in July last year. This comes after the BCU made a larger rate cut in January, with a reduction of 100 basis points. The monetary easing cycle comes as inflation continues to decrease. In a statement, the BCU highlighted that the annual inflation rate in the 12 months through January 2026 stood at 3.46%, below the target level of 4.5%, and down from 3.65% in December. January marked the seventh consecutive month to register a drop in annual inflation. Regarding global risks, the BCU’s latest statement recognised the impacts of the ongoing US-Israeli attacks on Iran and resultant rise in oil prices, although the BCU still believes that Uruguay’s inflation rate will remain below the target “assuming the inflationary effects of the conflict will not be significantly prolonged”.

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