FX.co ★ Paraguay Holds Interest Rate at 6%

In its October meeting, the Central Bank of Paraguay opted to maintain its policy interest rate at 6%. The committee highlighted several global developments, such as a modest uptick in U.S. inflation, which rose to 3.0%, and a stronger-than-anticipated rate of job creation in September. Concurrently, the unemployment rate climbed to 4.4%, and the likelihood of another Federal Reserve rate cut in December diminished. On the international stage, oil prices continued to fall amid a global oversupply climate. In contrast, agricultural commodities experienced widespread strength, with soybean, wheat, and corn prices increasing due to robust short-term demand. Domestically, Paraguay's economy displayed steady growth, evidenced by a 6.7% year-on-year rise in the Monthly Economic Activity Indicator for September 2025, buoyed by contributions from the services, manufacturing, agriculture, and electricity and water sectors. Inflation remained subdued, as the Consumer Price Index (CPI) was at -0.1% in October, with the annual inflation rate standing at 4.1% and expectations for the next 12 months anchored at 3.7%. The Central Bank reaffirmed its dedication to maintaining price stability.