Central Bank of Paraguay Holds Rate at 6% For the Fifteenth Month in a Row

Paraguay’s Central Bank has decided to keep its main interest rate at 6%, holding it steady for the fifteenth month in a row. This move comes as the country’s economy grows at a healthy pace and inflation, which measures how fast prices rise, remains under control.

The Central Bank’s board made this decision after looking at the latest numbers. In April, Paraguay’s economy grew by 3.3% compared to the same month last year.

Sectors like services, manufacturing, energy, and construction all saw gains. People also spent more in shops, with retail sales up 3.7% from last year. Inflation slowed to 3.6% in May, down from 4% in April.

This drop happened mostly because fuel and fresh food prices fell, even though some other goods and services became more expensive. The Central Bank aims to keep inflation around 3.5%. Right now, expectations for inflation over the next year are close to this goal.

Paraguay’s interest rate is one of the lowest in South America. The Central Bank says this rate is “neutral,” meaning it does not push the economy to grow faster or slow it down.

Paraguay Holds Rates Steady as Economy Balances

The Bank’s leaders say they will keep watching both local and global trends to make sure prices stay stable. Global factors also play a role.

Prices for oil and farm products have dropped, and the United States has not changed its own interest rates. These trends make it easier for Paraguay to keep its rate steady.

The Central Bank’s approach gives businesses and investors a sense of stability. Paraguay’s economy is now more balanced, with services making up about 60% of the country’s output.

The Bank expects the economy to grow by 4% this year, a bit higher than earlier forecasts. For businesses and families, stable prices and interest rates mean fewer surprises. This helps people plan for the future, whether they are running a company or managing a household budget.

All the information in this article comes from official statements and data from the Central Bank of Paraguay. The facts have not been changed or made up. This story explains why Paraguay’s leaders believe steady rates and stable prices are good for the country’s future.

More: Latin America news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error