Paraguay Interest Rate

The Central Bank of Paraguay held its benchmark interest rate steady at 6% in June 2025, citing steady economic growth and inflation trends. The decision was unanimous, reflecting confidence in the country’s macroeconomic stability amid external and domestic developments. In the US, job creation in May exceeded expectations, the unemployment rate remained at 4.2%, and annual inflation rose to 2.4%. Locally, economic activity continued to expand, with the IMAEP index showing a 3.3% annual increase in April, driven by services, manufacturing, energy generation, and construction. May’s inflation was 0% month-on-month, bringing the annual rate to 3.6%, with food prices being key contributors. Inflation expectations for the next 12 months fell to 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.