FX.co ★ Paraguay Maintains Interest Rate at 6%

The Central Bank of Paraguay maintained its monetary policy rate at 6.0% annually during its March 2025 meeting. This decision was influenced by various factors, including U.S. labor market data, which revealed that job creation in February was slightly below expectations, resulting in the unemployment rate rising to 4.1%. Additionally, annual inflation in the U.S. slowed to 2.8%, falling short of the anticipated 2.9%, while the Federal Reserve kept its interest rates within the 4.25%-4.50% range. Globally, a decline in oil and significant agricultural commodity prices was observed, prompted by optimistic supply forecasts and a decrease in global demand. Locally in Paraguay, the Monthly Economic Activity Indicator exhibited a year-on-year growth of 6.7% in January, attributed to robust performances in manufacturing, construction, services, and livestock sectors, despite downturns in agriculture and electricity generation. Despite February’s monthly inflation rate of 0.4%, the committee remains resolute in achieving its medium-term inflation target of 3.5%, reaffirming its commitment to maintaining price stability.