Anticipating an inflation sprint Uruguay’s central bank raised benchmark rate to 9%
Uruguay's central bank raised its benchmark interest rate 25 basis points to 9% on Friday in a bid to cool inflation expectations. The bank had held the rate steady at its last two monthly monetary policy meetings.
The Uruguayan economy grew by 3.8% year-on-year in the three months to June, the bank said last week, slowing from an expansion rate of 4.2% in the first quarter. But inflationary pressures have increased, the policy committee said in a statement issued after Friday's decision.
“The reactivation of external inflationary pressures and sustained domestic demand oblige us to focus on internal price pressures,” it said. “It is necessary to avoid a situation in which inflation threatens an economic scenario that otherwise looks healthy even in weak, uncertain and turbulent global context,” the central bank added.
August inflation was 0.93%, and 7.88% in the twelve months to August and 5.39% in the first eight months of 2012. Private estimates for September anticipate a floor of 1%.
In a more detailed analysis of the global context the Uruguayan central bank affirms there are no clear signs of a US recovery or visible exits for the European economic and financial crises. In this context the bank’s macroeconomic coordination committee believes international rates will continue extremely low and for a considerable time and thus financial markets will look for bonds in strong currencies for security reasons and to emerging countries for higher yields.
Commodities prices have advanced in this framework both because of the current strengthening of the US dollar and because of the North American drought which impacts on agriculture.
“Even when a slight slowing down is perceived in emerging economies, it still does not have an impact on inflationary pressures associated with food, minerals and energy prices”.
Meanwhile the Uruguayan economy continues to expand at a reasonable rate, mainly considering the deceleration at international level. There is also a high utilization of production resources and domestic demand remains strong.
Faced with strong outside inflationary pressures and the sustained domestic consumption, the bank’s concern is with domestic prices. Inflation must not be seen as a threat to an economic process which looks healthy despite world context.
Both the effective inflation rate as well as economic agents expectations remain notoriously above target, thus in line with a balance of economic policy objectives, the 25 basic points increase was decided.
The next meeting of the Monetary Policy Committee is scheduled for December 2012.
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At least ANTEL had the foresight to make capital reserves when things were better.
The pleading to the government by this flock of poorly run businesses to allow them to take loans over years and years to cover the shortfall has been agreed without any strings such as get your costs down, rein in the unions, etc.
USD 1.14 billion means EVERY MAN WOMAN AND CHILD has to pay USD318 (£196) to cover this disgraceful situation.
And that is not inflationary? I think a good clearout of these government placemen 'running' (or ruining) these companies is desperately needed.
Hey Chris with a 9% benchmark rate, what rate does the average Uruguayan have to pay for mortgages, personal loans and credit cards, could you inform me. Thanks.
There are very few mortgages available to the average Uruguayan and the only way to get their own house is to save from childhood and their families help them out.
I was amazed at how difficult it is to get your own property here and most locals have to rent.
My escribana, whose family owns a large estate agent, says that it has always been this way but the youngsters of today no longer want to work as hard as their parents, even though they want a car, a house, etc. Where have we heard this before?
Sellers sometimes offer a ‘loan’ or temporary deferral in payment to the buyer to help them get started. She says this is never more than 25% and never longer than 3 years to pay it back. I presume interest is agreed between the parties.
It is only in recent years that credit cards and loans from the bank have been generally available and then for relatively small amounts.
I no longer use my British credit cards in Uruguay and I do not have a local set; I use cash, either local pesos or for higher priced items USD.
The middle-aged Uruguayans are proud that there is little debt in the country and want to keep it that way. I don’t think that the younger people agree.
Sorry I can’t be any more specific.
Wow I'm very surprised that the financial system in Uruguay is so underdeveloped. This must make it hard for property investors or those wanting to sell and settle fast. With regards to credit cards I suppose it's not such a bad thing as people could easily get in financial difficulties if they are not experienced. It reminds me of Greece before it joined the EU, it too had a very cash oriented economy but then came the Euro and all that cheap money. The rest is history, and it only took ten years to ruin the country.
When we purchased our house in Uruguay we had the added disadvantage of still being in the UK at the time, though we had a 'power of attorney' in Uruguay acting for us. Our UK house took 12 months to sell so we went ahead and paid for the one in Uruguay from our funds as we did not want to miss it. It still took more than six months for everything to be enacted, but it was done properly and all the relevant taxes paid.
Your point about getting into trouble is a moot one. I know of one American who, to avoid the taxes, paid the owner in cash and has moved in thinking he owns the property! No deeds or anything in writing! It is only a small apartment in a small block of them but nevertheless he is going to be in real trouble when the intendencia finds out. He won't listen to me and says it 'won't be a problem'!
Greece was always going to be a basket case, they should never have been allowed into the EU.
4 Guzz
Can you, just for once, read the fcuking post?
I stated that the families help the youngsters out. I have no idea what they do in MVD, but where I live there are not many duplexes.
Yes, there are plots with two or three relatively poor houses on them. I know of two lots personally and the owner of each plot lives in one and rents out the other two.
After only 19 months in the country I am still learning, as I THOUGHT I had made it clear.
If you know differently then explain it and WTF do you know about my family? Answer NOTHING.
You have no clue what you are on about. A little hint, grounds in Uruguay are narrow and deep...
We don't know much about Mr. ChrisR's family, but we certainly have been informed about his “razor sharp flick knife” :-) ....... :
”(12) ChrisR Dec 13th, 2011
…..I can cut their throats on the fly with my razor sharp flick-knife. And it will be back in my pocket before they have finished dying and anyone knows who has done it.”
en.mercopress.com/2011/12/13/rockhopper-announces-fantastic-result-with-third-oil-discovery-in-falklands
”(67) ChrisR Feb 02nd, 2012
I would keep my mouth shut in case someone (like me) came along and slashed your left carotid artery, your windpipe and your right carotid artery from behind you (with my razor sharp flick-knife) before you even knew what was happening……..”
en.mercopress.com/2012/01/30/contruction-of-st-helena-airport-begins-next-may-should-be-ready-in-48-months
“(13) ChrisR Feb 05th, 2012
…..If you need any help I will loan you my 4.5 in razor sharp bladed flick knife.”
en.mercopress.com/2012/02/04/argentina-organized-labour-leader-again-blasts-the-government
“(11) ChrisR Feb 10th, 2012
….. if you are trained and carry a knife of your own (which is why I carry a 115 mm bladed razor sharp flick knife at all times)“
en.mercopress.com/2012/02/08/french-photographer-stabbed-to-death-when-taking-pictures-of-buenos-aires-malvinas-memorial
”(13) ChrisR Feb 11th, 2012
12 Think…. The reason I keep a flick knife on me at all times is to defend myself………….”
en.mercopress.com/2012/02/08/french-photographer-stabbed-to-death-when-taking-pictures-of-buenos-aires-malvinas-memorial#comments
Rest my (nut)case...........
Well.....
That's why he dislikes me so much......
My big fault in life is that I see what people do, listen to what people say and read what people write............. and do remember it.
I said: “I read what people write”
I don't waste my time reading what Turnips write....
I make an exception with ChrisR because I made a wager with myself that he will not last two more years in Uruguay....
I'm waiting for his “moving notice” ;-)
You dislike me because I know you to be the biggest liar on MercoPress and have proven it on numerous occasions.
Is your 1955 French watch, hacked by the Russians into a poor ‘Navigator’s Watch’ still running in perfect time without ANY servicing, as you laughingly claim? Even though it is oiled by sperm whale oil? You really think everyone except you and the other AG trolls are idiots and you are frustrated when you are caught lying.
You can laugh at me as much as you like, but remember this: it is now my 19th month in Uruguay and in 5 months you will be wrong again.
I can’t say that besting some old fart in Chubut growing his turnips, time after time, is in any way a challenge, but heh – it can be fun when I see the other Brits support me.
Bet you don't come to Uruguay this year!
Sorry mate, that last post was to Chris, my confusion
You say:
“You can laugh at me as much as you like, but remember this: it is now my 19th month in Uruguay and in 5 months you will be wrong again.”
At (13) , I said:
”… he will not last two more years in Uruguay.”
” Two MORE years”
Comprende?
Besides….. I’m not laughing at you, I’m just waiting for you to go back to England latest in 2014.
We have enough homegrown Psychos.
We don’t need foreign ones!
Anyhow….., I just wounded up my Sturmanskie and it is ticking like in 61.
Here’s a picture of one of its twins…..
www.netgrafik.ch/images/gagarin.jpg
And guess what? My Zentra KM is ticking like in 42 :-)
tinypic.com/dxk45v.jpg
Ps:
No more Uruguayfor me this year.
March 2013 mates dulces in Oceanía del Polonio.
(Si Dios quiere y la Virgen lo permite)
Well, I think, irrespective of what you think 'Think', that ALL the Brits and quite a few other nationals have the measure of you.
I have checked on those excerpts you posted and AS USUAL your obfuscation of the truth is exceeded only by your senility: you said two years last year.
Also, anyone who goes near you national memorial in BsAs may well get murdered for their camera / the morons who claim some stupid name like the violent saviours of the motherland who were burning tyres and using their own children as shields for themselves, were also one of the subjects.
Only a complete idiot would go anywhere that looks remotely dangerous without having some means to defend his wife and himself from the much younger thugs hell bent on doing them harm. Also I use the knife I carry on a daily basis working on my property, it is also legal to carry them.
Your PS was interesting. As you know I used to be a high church altar boy and was confirmed. Then I discovered science and astrophysics and grew up. I am now an atheist. You obviously need to remain seated in the middle ages with the rest of the sheep herders of the desert.
Glad to know you are not coming to Uruguay, but we could have compared you old watch to my knife collection, wouldn’t that have been fun; for one of us anyway?
Guzz: true to form again I see, how very disappointing but utterly predictable you are.
Please don't call me that. I am a conservative constitutionalist Chilean. I am the “anti Pinochetista”. Being conservative (fiscally speaking) doesn't mean you are a Fascist. In fact Communism and Fascism have way more in common than my free market, fiscally conservative, rule of law with a credible social safety net political model.
As for Uruguay, I'm going to read up more about them. If in fact their financial system is so backward I think that further economic progress will be dificult for them.
to Uruguay for a three nights to meet someone and wonder what the chances are of opening a bank account or depositing a few usd in a plazo fijo.
I have argie dni,don't know it that's good news or not but it's getting rather oppressive over here these days.Looking for a bit more security
personal and financial,any advice much appreciated.cheers gents.
When I came over on a 'scouting' holiday to look at Uruguay for a place to retire, I very soon knew we had found it.
I went to the BROU bank in Missiones, MVD together with my escribana (I could not speak any Espanol at all then) and within 30 minutes came out with an account in USD, a bank ID card and a internet link to my account.
I am British and had all my commercial ID with me including a personal reference from my main UK bank.
I don't know what an argie dni is, so I take it that is an identity card, very like my UYU Cedula. If they think you are Argentine it could be somewhat different.
I know the The Mad Bitch Of Argentina is trying to make life difficult for you banking in Uruguay. As long as the amount is not significant USD0.5M I would think, then I can't imagine BROU will have a problem.
Of course, you may have a problem getting even USD 10,000 out of Argentina if the accounts in the papers are anything to go by. If you come by car don't put the money in the spare tyre itself, they always check that for money whether it is inflated or not.
I have no idea how successful money smugglers manage it: they are not going to tell are they?
Enjoy your stay, we love Uruguay and have been here 19 months now.
many thanks for the reply.Maybe you can give me your email or can contact me from this post.Sorry I is a bit thick on pc's,what am I not thick on you ask....haha...I'll think about that one.
Hope to catch up with yo one day.Suerte
No, that is not why Dunni-Berger calls me that.
He calls me Chris Rambo because he was proven by me not to know what he was on about when he claimed various bits of nonsense about the small arms in use in AG and the fact there are 3M civilians 'who will kill the UK soldiers' forgetting we could deal with AG using cruise missiles.
Unfortunately, I think it will come to that.
Get it now?
Good warmonger name...
Dont tease Ninja ChrisR or he could....: ”slash your left carotid artery, your windpipe and your right carotid artery from behind you before you even knew what was happening……..”
en.mercopress.com/2012/01/30/contruction-of-st-helena-airport-begins-next-may-should-be-ready-in-48-months
(67) ChrisR Feb 02nd, 2012
67 ChrisR (#)Feb 02nd, 2012 - 04:49 pmReport abuse65 Filippo
I put this response on your other posr, I repeat it here;
So, according to you, you old man murdered the people of Argentina.
'We can be strong again' no you cannot, because murdering people like that just makes you cowardly psychopaths.
Not only that, your wop grandfather 'being wanted on false accusations of war crimes' LIKE FATHER LIKE SON (your father).
If this really is your family history I would keep my mouth shut in case someone (like me) came along and slashed your left carotid artery, your windpipe and your right carotid artery from behind you before you even knew what was happening. AND I am just the man to avenge the poor bastards your bastard wop grandfather and father murdered.
GOT THE MESSAGE YOU COWARD.“
I have no regrets posting this.
BUT, I don't Think', as you did not decry this moron Filippo it just confirms what a despicable character you are.
Even your mate Dunni-Burger does not defend that sort of atrocity.
24 Guzz
I would prefer 6.5”. :o)
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