Paraguay Holds Interest Rate at 5.5%

2026-03-20 19:20 By Felipe Alarcon 1 min. read

The Central Bank of Paraguay maintained its policy interest rate at 5.50% at its March meeting.

The committee cited global developments including IMF estimates showing global growth at 3.3% in 2025 and 2026, while in the US GDP grew 0.7% annualised in Q4 2025, February job gains undershot expectations as unemployment rose to 4.4%, and annual inflation held at 2.4%, with markets now pricing no further Federal Reserve cuts in 2026.

Internationally oil prices rose past $100 per barrel amid geopolitical uncertainty despite oversupply expectations, while agricultural prices were mixed with moderate increases in soybeans, corn, and wheat.

Domestically the IMAEP grew 0.9% year on year in January supported by services, electricity and water, and agriculture, while the business figures estimator rose 0.2%.

Inflation continued to ease with the CPI at 0% in February, annual inflation reaching 2.3%, and inflation expectations anchored at 3.5%.

The CPM reaffirmed its commitment to price stability.



News Stream
Paraguay Holds Interest Rate at 5.5%
The Central Bank of Paraguay maintained its policy interest rate at 5.50% at its March meeting. The committee cited global developments including IMF estimates showing global growth at 3.3% in 2025 and 2026, while in the US GDP grew 0.7% annualised in Q4 2025, February job gains undershot expectations as unemployment rose to 4.4%, and annual inflation held at 2.4%, with markets now pricing no further Federal Reserve cuts in 2026. Internationally oil prices rose past $100 per barrel amid geopolitical uncertainty despite oversupply expectations, while agricultural prices were mixed with moderate increases in soybeans, corn, and wheat. Domestically the IMAEP grew 0.9% year on year in January supported by services, electricity and water, and agriculture, while the business figures estimator rose 0.2%. Inflation continued to ease with the CPI at 0% in February, annual inflation reaching 2.3%, and inflation expectations anchored at 3.5%. The CPM reaffirmed its commitment to price stability.
2026-03-20
Paraguay Cuts Interest Rate 5.75%
The Central Bank of Paraguay cut its policy interest rate to 5.75% at its January meeting. The committee cited global developments including IMF estimates showing global growth at 3.3% in 2025 and 2026, while in the US GDP grew 4.4% annualised in Q3 2025, December job gains undershot expectations as unemployment fell to 4.4%, and annual inflation held at 2.7%, with markets still pricing further Federal Reserve cuts in 2026. Internationally oil prices rose amid geopolitical uncertainty despite oversupply expectations, while agricultural prices were mixed with soybeans rising and corn and wheat falling. Domestically the IMAEP grew 4.0% year on year in November supported by services, electricity and water, agriculture and livestock, while manufacturing softened. Inflation continued to ease with the CPI at -0.3% in December, annual inflation ending 2025 at 3.1%, and inflation expectations anchored at 3.5%. The CPM reaffirmed its commitment to price stability.
2026-01-23
Paraguay Holds Interest Rate at 6%
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.
2025-12-22