The Central Bank of Paraguay’s Monetary Policy Committee (CPM) unanimously kept the monetary policy rate (TPM) at 6.00% on October 24, citing better-than-expected economic activity, contained recent headline and core inflation, inflation expectations aligned with target, and reduced exchange-rate pressures, while projecting inflation to end 2025 at 4.0% and converge to the 3.5% target in 2026, after holding the TPM at 6.00% at every meeting from January through September 2025. The Committee said the September Monetary Policy Report raised the 2025 GDP growth forecast to 5.3%, with August IMAEP up 4.5% year on year, while September CPI fell 0.1% month on month and annual inflation stood at 4.3%. It added that exchange-rate appreciation and lower fuel prices had helped contain inflation, while in global markets the International Monetary Fund (IMF) revised up global and Latin America and the Caribbean growth forecasts, markets continued to expect further Federal Reserve rate cuts, the U.S. dollar appreciated and long-term Treasury yields declined, and oil prices kept falling on projected excess supply for 2026 and reduced Middle East tensions.
Central Bank of Paraguay2025-10-24
Central Bank of Paraguay Keeps Policy Rate at 6.00%
The Central Bank of Paraguay’s Monetary Policy Committee unanimously kept the monetary policy rate at 6.00% on 24 October, citing stronger-than-expected economic activity, contained headline and core inflation, inflation expectations in line with target, and lower exchange-rate pressures. It said 2025 gross domestic product growth was revised up to 5.3%, annual inflation stood at 4.3% in September, and inflation is projected at 4.0% at end-2025 before converging to the 3.5% target in 2026.