Paraguay Interest Rate

The Central Bank of Paraguay maintained the monetary policy rate at 6.0% per year in its February 2025 meeting. This decision considered key economic factors, including lower-than-expected job creation in the U.S., a slight drop in unemployment, and rising inflation to 3.0%. The Federal Reserve kept its interest rates unchanged, while global markets saw a decline in the U.S. dollar and Treasury yields. Oil prices fell due to improved supply expectations, while agricultural commodity prices varied. In Paraguay, economic activity grew modestly, with services and construction performing well, while manufacturing and agriculture declined. Domestic inflation reached 1.0% in January, mainly driven by food and service prices. The MPC reaffirmed its commitment to price stability and will continue monitoring economic trends to maintain inflation at the 3.5% target.