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

In its April 2025 meeting, the Central Bank of Paraguay decided to maintain the monetary policy rate at an annual 6.0%. This decision comes amidst a backdrop of declining international oil prices, a result of anticipated lower global demand and more favorable supply conditions. Agricultural commodity prices displayed volatility, with increases noted in soybean and corn, while wheat prices declined. On the domestic front, Paraguay’s Monthly Economic Activity Indicator revealed a robust year-on-year growth of 4.9% in February, or 6.0% when excluding agriculture and binational contributions. This growth was largely propelled by robust performances in the services sector, manufacturing, electricity generation, livestock, and construction, although agricultural growth applied a moderating influence. Despite experiencing a monthly inflation rate of 1.2% in March, the committee remains steadfast in its goal to achieve a 3.5% inflation target over the medium term, underscoring its dedication to maintaining price stability.