29 December 2012

URUGUAY : Inflation Worries Spurs CBank To Raise Benchmark...to 9.25%.


     After October's inflation was tracked at 9.1%...the central bank decided to raise its benchmark interest rate for only the 2nd time in 2012...by 25 bps...to 9.25%.
     Annual inflation is pacing at 9.03%...well above the target level of 4-6%.
     Montevideo is worried about the influx of foreign capital seeking higher yields... especially since the ratings agencies have recently boosted the nation's credit worthiness.