Investor Presentaiton

3 Monetary policies focused on reducing inflation and anchoring inflation expectations within target band 1 2 Commitment to lower inflation Short-term Interest rate as policy instrument Enhanced 3 transparency in communication 4 Contractionary monetary policy stance 5 Financial De- Dollarization Source: Central Bank of Uruguay. Key focus is to lower inflation and anchor inflation expectations within the target band, in a lasting way. ■ New monetary policy instrument under inflation targeting regime. Designed to improve market signals and allows for fine-tuning of monetary policy at higher frequency. Higher frequency in Monetary Policy Committee (MPC) meetings, published minutes of MPC, relaunched inflation survey, among others. ■ Publication of Central Bank's inflation projections and survey of firms' inflation expectations. ■ As the pandemic eased and inflationary pressures build up, the Central Bank shifted towards a more contractionary monetary policy stance, increasing the reference rate by a cumulative 700 bps since September 2020, to 11.50%. In the April 2023 meeting, it reduced the reference rate by 25bps (to 11.25%), which was subsequently maintained in the May 2023 COPOM meeting. In the July 2023 meeting, the decision was a reduction of 50bps (to 10.75%), while in the August meeting the reduction was 75bps (to the current 10%). Rebuilding markets in local currency to mitigate financial dollarization and developing FX derivatives markets ■ More differentiation on taxes on interest gains on financial instruments, favouring local currency deposits and securities vis a vis dollar instruments. ■ Encouraging public enterprises to be active in FX derivatives markets. 16

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