The president of the Central Bank of Uruguay highlighted the decline in inflation and anticipated that it will close 2024 within the target range.
The president of the Central Bank of Uruguay (BCU), Diego Labat, highlighted the decline in the inflation and stressed that the monetary authority achieved its two main objectives, which are financial and price stability.
Beyond some upward pressures, Labat considered that the CPI “It is where we wanted it to be, very close to the center of the range” and anticipated that “it is at this value that we more or less project that it will close in 2024”, ruling out the possibility that the indicator will exceed the 6% ceiling that was set in BCU as a goal.
The president of the monetary authority expressed himself thus when leading the opening of the XXXIX Annual Conference on Economics, which he described as “the most prestigious and longest-running event in the country on this subject to promote, disseminate and discuss research and analysis on economic issues.”
“This year the two central objectives of the Central Bank were simultaneously achieved: financial stability and the price stability”, Labat highlighted at the event, which will address topics such as climate change and macroeconomics; open finance; payment systems; artificial intelligence and central banking; gender and labor market; and fiscal institutions.
Finally, he stressed that “understanding the potential that the artificial intelligence, Machine learning, natural image processing and applying it to specific use cases in the activity of Central Banking, not only motivates us, but also has a positive impact on the generation of knowledge and the development of capabilities.”
Labat insists that the BCU will not intervene in the value of the dollar
During a press conference, Labat was asked about the exchange rate lag and criticism from sectors such as the agriculture and the exporters. “The BCU has defined that there is a pure float, where the value of the exchange rate is defined by supply and demand. We are reaching three years without intervention,” he said.
In this regard, he insisted on not covering multiple objectives and prioritizing the reduction of the CPI and its maintenance within the target range. “That is clearly a great support for the credibility and marks our commitment to the sole objective of lowering inflation,” he said.
Source: Ambito
