Uruguay Cuts Key Rate for Seventh Time as Inflation Runs Low

Uruguay’s central bank extended its easing cycle, lowering the benchmark interest rate by three quarters of a percentage point to 5.75% as it grapples with inflation below its target.

The rate cut on Tuesday followed January’s 100-basis point reduction in borrowing costs that surprised investors. The central bank has lowered borrowing costs seven times — totaling 350 basis points — since the start of the current easing cycle in July 2025.