31 December 2011

URUGUAY: Fearing Inflation...C.Bank Drastically Raises Benchmark...By 75 Bps; Now 8.75%.

                                               M.PRESS

     Considering their histories...most South American nations are understandably nervous about inflation.
     But...Montevideo's central bank drastically raised its benchmark rate...by 75 bps...to 8.75%...as inflation continued to roar ahead.
     The small nation across the Rio Plata/River Plate from Buenos Aires...where inflation is unofficially 25% or higher annually...wants to prune its growth.
    In November...inflation there jumped to 8.4% from 7.9% in October.
    The central bank’s target inflation range is a more modest 4% to 6%.