The central bank of Paraguay left the benchmark interest rate unchanged at 4.75 percent at its April 24th 2019 meeting, after trimming it by 25 bps in the previous meeting. Policymakers said that the decision is compatible with the convergence of the inflation rate to the target of 4 percent in the forecast horizon. The Committee added that they will continue to monitor the external and domestic evolution in order to apply measures to guarantee the convergence of projected inflation. Also, policymakers underscored that domestic growth remains adequate despite a recent supply-side shock, namely a drought. Interest Rate in Paraguay averaged 5.98 percent from 2010 until 2019, 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 4.75 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 5.00 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.