The central bank of Paraguay held the benchmark interest rate at 5.25 percent on January 21st 2018. The decision was unanimous. Policymakers said that the decision is the most prudent strategy and will continue to monitor the evolution of the internal and external macroeconomic variables in order to guarantee the convergence of the inflation to an annual target rate of 4 percent.The Committee noted a slowdown in global economy growth and at the regional level a contraction in Argentina's economy with high inflation, while in Brazil’s growth prospects have improved modestly amid reform expectations. Policymakers also noted that the annual inflation rate fell to 3.2 percent in December from 4.0 percent in November, reaching its lowest level since June 2017 mainly due to lower cost of food and non-alcoholic beverages, and the outlook remains in line with the inflation target range. Interest Rate in Paraguay averaged 6.02 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 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 5.50 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.