The central bank of Paraguay held the benchmark interest rate at 5.25 percent on 22 November 2018 following no change on 23 October 2018. The decision was unanimous. The policy statement highlighted that regional volatility decreased since the last meeting, currency depreciation in Argentina stopped and confidence in Brazil improved, despite still subdued growth prospects. Nonetheless, policymakers also underscored that inflation expectations still remain aligned with the target of 4%. The annual inflation rate in Paraguay rose to 4.1 percent in October of 2018 from 4.0 percent in the previous month. It was the highest inflation rate since June. Interest Rate in Paraguay averaged 6.03 percent from 2010 until 2018, reaching an all time high of 8.50 percent in August of 2011 and a record low of 3.50 percent in November of 2010.
Interest Rate in Paraguay is expected to be 5.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Paraguay to stand at 6.00 in 12 months time. In the long-term, the Paraguay Interest Rate is projected to trend around 6.50 percent in 2020, according to our econometric models.