FX.co ★ Paraguay Holds Interest Rate

In its September session, the Central Bank of Paraguay opted to maintain its policy interest rate at 6%. The committee highlighted a series of global economic factors, such as the slight increase in U.S. inflation to 2.9%, reduced job growth, and the recent rate reduction by the Federal Reserve. On the international front, oil prices experienced a decline attributed to increased production from OPEC+, while agricultural commodities displayed varied trends. On the domestic side, Paraguay's economic performance remained robust, evidenced by a 4.9% rise in the Monthly Economic Activity Indicator for July, fueled by gains in services, manufacturing, construction, and livestock. Inflation levels stayed low, with core inflation at 0.3% monthly and 4.6% annually, aligning with target expectations. The Central Bank reaffirmed its dedication to maintaining price stability and pledged to closely monitor both domestic and international developments to ensure that inflation continues to align with the 3.5% objective.