Paraguay Interest Rate

The Central Bank of Paraguay held its benchmark interest rate steady at 6.0% in July 2025. The decision was unanimous, reflecting confidence in the country’s macroeconomic stability amid external and domestic developments. In the US, job creation in June exceeded expectations, the unemployment rate fell to 4.1%, and annual inflation rose to 2.7%. Locally, economic activity continued to expand, with the IMAEP index showing a 6.2% annual increase in May, driven by services, manufacturing, energy generation, construction, and livestock. June’s inflation was 0.0% month-on-month, bringing the annual rate to 4.0%, with fuel prices being key contributors. Inflation expectations for the next 12 months held at 3.7%, while for the policy-rate horizon they remained aligned with the 3.5% target. The committee reaffirmed its commitment to price stability, monitoring global and domestic trends to steer inflation toward its 3.5% target.