Paraguay Interest Rate

The Central Bank of Paraguay kept its monetary policy rate at 6.0% per year during its March 2025 meeting. This decision was influenced by several factors, including U.S. labor market data, where February job creation was slightly below expectations, and the unemployment rate rose to 4.1%. Annual inflation in the U.S. slowed to 2.8%, below the expected 2.9%, while the Federal Reserve maintained its interest rates in the 4.25%-4.50% range. On the global front, oil and key agricultural commodity prices dropped due to better supply forecasts and reduced global demand. Locally, Paraguay's Monthly Economic Activity Indicator grew by 6.7% yoy in January, , driven by strong performances in manufacturing, construction, services, and livestock, though agriculture and electricity generation saw declines. Despite monthly inflation of 0.4% in February, the committee remains focused on maintaining its inflation target of 3.5% over the medium term, emphasizing its commitment to price stability.