The Central Bank of Paraguay’s Monetary Policy Committee (CPM) unanimously held the monetary policy rate (TPM) at 6.00% on May 23, 2025, citing positive economic momentum alongside inflation that remained above target but with expectations for the monetary policy horizon still aligned with the 3.5% objective; the TPM has remained at 6.00% at each meeting from January through April 2025. The CPM said economic activity stayed firm, with the Monthly Indicator of Economic Activity (IMAEP) rising 4.4% year on year in March and the GDP growth projection standing at 4.0%, while the Large Companies Sales Indicator increased 9.9% in March. Monthly Consumer Price Index (IPC) inflation was 0.4% in April and annual inflation was 4.0%, with food, especially meat and dairy products, as the main driver, while inflation expectations for 2025 were unchanged at 4.0% and those for the next 12 months edged up to 3.8%. In the external backdrop, the CPM noted that easing trade tensions reduced international market volatility, the U.S. dollar as measured by the DXY index was at levels similar to a month earlier, and oil prices declined to around USD 62 per barrel on average for WTI-Brent. The committee reiterated that it will closely monitor domestic and international developments and take timely measures to ensure compliance with the 3.5% target over the monetary policy horizon.
Central Bank of Paraguay2025-05-23
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 23 May 2025, citing firm economic activity and inflation still above target but with expectations over the monetary policy horizon remaining aligned with the 3.5% objective. The committee noted March IMAEP growth of 4.4% year on year, a 2025 gross domestic product growth projection of 4.0%, and April annual inflation of 4.0%, driven mainly by food, and said it will continue to monitor developments to ensure compliance with the target.