22.12.202520:10:47UTC+00Paraguay Holds Interest Rate at 6%

The Central Bank of Paraguay maintained its policy interest rate at 6% in its December meeting. The committee considered several global developments: the Federal Reserve reduced its target range to 3.50%–3.75% in December, with market expectations for further cuts by 2026. Meanwhile, U.S. employment figures for November surpassed expectations, despite an increase in unemployment to 4.6%, and annual inflation softened to 2.7%. Internationally, oil prices continued to fall due to global oversupply, while agricultural commodities showed mixed trends, with corn prices increasing as soybean and wheat prices declined. Domestically, the Paraguayan economy demonstrated steady growth, with the Monthly Economic Activity Indicator rising 5.7% year-over-year in October 2025, bolstered by sectors such as services, manufacturing, agriculture, and electricity and water. Inflation remained subdued, with a monthly Consumer Price Index (CPI) of 0.2% in November and annual inflation at 4.1%. Inflation expectations for the next 12 months stayed at 3.7%. The Central Bank reaffirmed its dedication to maintaining price stability.