The Central Bank of Paraguay’s Monetary Policy Committee (CPM) unanimously kept the monetary policy rate at 5.50% annually in April 2026, citing continued expansion in economic activity, low current inflation, anchored expectations, and elevated external uncertainty linked to geopolitical tensions and energy prices; after cutting the rate from 6.00% to 5.75% in January and to 5.50% in February, the CPM has now held it unchanged for March and April. The Committee said short-term indicators continued to show growth early in the year, with the Monthly Economic Activity Indicator rising 3.8% year on year in February and the 2026 GDP growth projection maintained at 4.2%, while consumer confidence remained in optimistic territory. Inflation projections for 2026 were also kept at the 3.5% target, with March headline inflation at 1.9% year on year and inflation expectations anchored at 3.5% for both the next 12 months and the monetary policy horizon, even as monthly CPI rose on fuel and other volatile items. Externally, the CPM highlighted persistent uncertainty from tensions in the Middle East, an International Monetary Fund downgrade of 2026 global growth to 3.1% alongside a higher global inflation forecast of 4.4%, volatile oil prices with Brent near USD 95 per barrel, and higher soybean, corn, and wheat prices. The Committee said it will continue to closely monitor external risks and take timely measures to ensure inflation converges to target over the monetary policy horizon.
Central Bank of Paraguay2026-04-21
Central Bank of Paraguay Holds Policy Rate at 5.50% in April 2026
The Central Bank of Paraguay’s Monetary Policy Committee unanimously left the monetary policy rate unchanged at 5.50% in April 2026, after cuts in January and February, citing continued economic expansion, low inflation, and anchored expectations alongside elevated external uncertainty tied to geopolitical tensions and energy prices. The Committee maintained its 2026 gross domestic product growth projection at 4.2% and its inflation forecast at the 3.5% target, noting March headline inflation of 1.9% year on year and saying it will keep monitoring external risks to ensure inflation converges to target.