21.04.202621:08:28UTC+00Paraguay Holds Interest Rate at 5.5%

At its April meeting, the Central Bank of Paraguay left its benchmark interest rate unchanged at 5.50%. The Monetary Policy Committee highlighted continued global uncertainty, underscored by the IMF’s downward revision of global growth to 3.1%.

In the United States, the unemployment rate fell to 4.3%, while inflation rose to 3.3%. This combination has kept international markets cautious, despite a slight easing in U.S. Treasury bond yields. On global commodity markets, Brent crude hovered around 95 dollars per barrel amid ongoing geopolitical tensions. Agricultural commodities, including soybeans, corn, and wheat, recorded price increases driven by weather-related factors and stronger demand.

Domestically, Paraguay’s economic activity index (IMAEP) expanded by 3.8% year-on-year in February, supported by robust performances in the services and construction sectors. Business sales, as measured by the Estimador de Cifras de Negocios (ECN), grew by 4.8%, and consumer confidence remained in positive territory.

Monthly inflation reached 0.8% in March, bringing the annual rate to 1.9%. Inflation expectations remain anchored at 3.5%, and real GDP is projected to grow by 4.2% this year. The Monetary Policy Committee (CPM) reaffirmed its commitment to preserving price stability.