Paraguay Holds Interest Rate

The Central Bank of Paraguay left its the policy interest rate at 6% during its September meeting. The committee noted global developments, including a modest rise in US inflation to 2.9% and slower job growth, alongside the Federal Reserve’s recent rate cut. Internationally, oil prices declined due to higher OPEC+ production, while agricultural commodities showed mixed trends. Domestically, Paraguay’s economy grew steadily, with the Monthly Economic Activity Indicator up 4.9% in July, supported by services, manufacturing, construction, and livestock. Inflation remained low, with monthly core inflation at 0.3% and annual inflation at 4.6%, while expectations stayed close to the target. The CPM reaffirmed its commitment to price stability and will continue monitoring domestic and global developments to ensure inflation remains aligned with the 3.5% policy goal.