Paraguay Interest Rate

The Central Bank of Paraguay left its policy interest rate at 6% during its December meeting. The committee noted global developments including the Federal Reserve cutting its target range to 3.50%–3.75% in December with markets pricing further cuts in 2026, US employment in November beating expectations while unemployment rose to 4.6% and annual inflation eased to 2.7%. Internationally oil prices continued to decline amid global oversupply while agricultural prices were mixed with corn rising but soybean and wheat falling. Domestically the economy grew steadily with the Monthly Economic Activity Indicator up 5.7% year on year in October 2025 supported by services, manufacturing, agriculture and electricity and water. Inflation remained low with the monthly CPI at 0.2% in November and annual inflation at 4.1% while inflation expectations held at 3.7% for the next 12 months. The CPM reaffirmed its commitment to price stability.