Paraguay Interest Rate

The Central Bank of Paraguay left its policy interest rate at 6% during its October meeting. The committee noted global developments, including a modest rise in US inflation to 3.0% and stronger than expected job creation in September with unemployment rising to 4.4%, alongside a diminished probability of a further Federal Reserve rate cut in December. Internationally oil prices continued to decline amid a context of global oversupply, while agricultural commodities showed broad based strength with soybean, wheat and corn all rising on firmer short term demand. Domestically the economy grew steadily, with the Monthly Economic Activity Indicator up 6.7% year on year in September 2025, supported by services, manufacturing, agriculture and electricity and water. Inflation remained low, with the monthly CPI at -0.1% in October and the annual inflation rate at 4.1%, while expectations held at 3.7% for the next 12 months. The CPM reaffirmed its commitment to price stability.