Paraguay’s central bank holds at 6%

Published 24/06/2025, 20:54
Paraguay’s central bank holds at 6%

Investing.com -- Paraguay’s central bank maintained its benchmark interest rate at 6% on Tuesday, following a unanimous decision by the Monetary Policy Committee (MPC).

The decision came as Paraguay’s economy showed signs of growth, with the Monthly Economic Activity Indicator recording a 3.3% year-on-year increase in April. When excluding agriculture and binational companies, this growth reached 3.8%.

The Business Figures Estimator reported a 3.7% year-on-year change in April, reflecting higher sales across multiple sectors including fuel, clothing, household goods, supermarkets, and chemical and pharmaceutical products. The Consumer Confidence Index stood in the optimistic range at 53.5 in May.

On the inflation front, Paraguay’s monthly Consumer Price Index (CPI) inflation was 0% in May, with price increases in certain foods, durable goods, and services offset by decreases in fruit, vegetables, and fuel categories. Year-on-year CPI inflation was 3.6%, while the CPI excluding food and energy rose 4.3%. Inflation expectations for the next 12 months decreased slightly from 3.8% to 3.7%.

In the United States, the Federal Reserve maintained its federal funds rate target range at 4.25%-4.50% during its June meeting and forecasts a 50 basis point decrease for the remainder of the year. U.S. job creation in May exceeded expectations while the unemployment rate remained at 4.2%. Year-on-year inflation in the U.S. rose to 2.4% in May.

The MPC also noted escalating geopolitical tensions in the Middle East, creating uncertainty about future oil price dynamics. In agricultural commodities markets, wheat prices increased while soybean and corn prices fell.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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