The Central Bank of Paraguay’s Monetary Policy Committee unanimously held the monetary policy rate at 5.50% on June 23, 2026, saying the decision was consistent with a neutral policy stance as economic activity remains favorable and inflation is expected to stay below target in the coming months despite higher-than-anticipated fuel prices. The committee said Paraguay’s monthly economic activity indicator grew 3.4% year on year in April and reiterated projected economic expansion of 4.2% for 2026, while May consumer prices rose 2.4% from a year earlier and inflation expectations remained anchored at 3.5% for both the next 12 months and the monetary policy horizon. Externally, it noted that Brent crude had fallen to below USD 80 a barrel since the previous meeting, although Middle East geopolitical developments remain a significant source of uncertainty, while markets continue to anticipate Federal Reserve rate increases in coming months after the Fed kept its target range unchanged in June. The committee said it will continue to closely monitor external risks and assess their implications for the inflation path, taking any measures needed to ensure inflation converges to target over the policy horizon.
Central Bank of Paraguay2026-06-22
Central Bank of Paraguay Holds Policy Rate at 5.50%
The Central Bank of Paraguay’s Monetary Policy Committee unanimously kept the policy rate at 5.50% on June 23, 2026, saying the decision was consistent with a neutral stance as economic activity remains favorable and inflation is expected to stay below target in coming months despite higher-than-expected fuel prices. The committee reiterated 2026 growth of 4.2%, noted April activity growth of 3.4% year on year, May inflation of 2.4%, and inflation expectations anchored at 3.5%, while continuing to monitor external risks including Middle East tensions and anticipated Federal Reserve rate increases.