FX.co ★ Paraguay Holds Interest Rate Steady at 6%

The Central Bank of Paraguay maintained its benchmark interest rate at 6.0% in July 2025, following a unanimous decision, underscoring confidence in the nation's macroeconomic stability amidst both international and domestic factors. In the United States, June saw job growth surpass forecasts, the unemployment rate decline to 4.1%, and annual inflation increase to 2.7%. Domestically, economic activity showed continued expansion, evidenced by a 6.2% annual rise in the IMAEP index in May, with significant contributions from the services, manufacturing, energy, construction, and livestock sectors. June's inflation rate held steady month-on-month at 0.0%, leading to an annual rate of 4.0%, heavily influenced by fuel prices. Inflation expectations over the next 12 months remained steady at 3.7%, while projections for the policy-rate horizon were in line with the 3.5% target. The committee reiterated its dedication to maintaining price stability, closely observing both global and local trends to guide inflation towards its 3.5% objective.