The Central Bank of Paraguay’s Monetary Policy Committee (CPM) unanimously held the monetary policy rate (TPM) at 6.00% in its November 21, 2025 statement, citing strong economic momentum, easing year-on-year inflation, expectations in line with target, lower exchange-rate pressures and an economy operating around its potential level, with inflation projected at around 4.0% at end-2025 and converging to the 3.5% target during 2026, and the TPM has remained at 6.00% throughout 2025, including in October. Domestic indicators stayed firm, with the Monthly Indicator of Economic Activity of Paraguay (IMAEP) rising 6.7% year on year in September and the Large Companies Sales Indicator (ECN) increasing 8.4%, while October consumer price inflation was -0.1% month on month and 4.1% year on year, and inflation excluding food and energy stood at 2.3%; inflation expectations were 3.7% for the next 12 months and 3.5% over the monetary policy horizon. The CPM said appreciation of the local currency, together with lower international oil prices, helped reduce prices of non-food goods, some services and fuels. Externally, it noted that the Federal Reserve cut rates at end-October but markets now assign a lower probability to another December cut, while Treasury yields and the USD rose, and oil prices continued to fall amid global excess supply. The committee reaffirmed its commitment to price stability and said it will continue to monitor domestic and external developments closely to ensure
Central Bank of Paraguay2025-11-21
Central Bank of Paraguay Holds Policy Rate at 6.00%
The Central Bank of Paraguay’s Monetary Policy Committee unanimously kept the monetary policy rate at 6.00% on 21 November 2025, citing strong domestic activity, easing inflation, expectations in line with target and lower exchange-rate pressures. It said October inflation was 4.1% year on year, projected inflation at around 4.0% at end-2025 and expects convergence to the 3.5% target during 2026.