The Central Bank of Paraguay maintained the interest rate at 6.0% in February 2025, considering economic factors such as U.S. job growth and a rise in inflation to 3.0%. Economic activity in Paraguay saw modest growth contrasting with declines in manufacturing and agriculture. The MPC remains focused on maintaining inflation stability, targeting 3.5%.
In its February 2025 meeting, the Central Bank of Paraguay decided to maintain the monetary policy rate at 6.0% per year. This decision reflects key economic indicators, such as a slowdown in job creation within the United States, a slight decrease in unemployment rates, and a rise in inflation to 3.0%.
The Federal Reserve also opted to keep its interest rates unchanged during this period. Concurrently, global financial markets indicated a decline in the U.S. dollar alongside Treasury yields while oil prices decreased due to improved supply forecasts. Reports showed variability in agricultural commodity prices.
In Paraguay, economic activity exhibited modest growth, particularly in the service and construction sectors, while the manufacturing and agriculture sectors faced declines. Domestic inflation in January reached 1.0%, primarily influenced by the rising prices of food and services.
The Monetary Policy Committee (MPC) reaffirmed its dedication to achieving price stability. They plan to closely monitor economic trends with the aim of maintaining the inflation target at 3.5%.
In summary, Paraguay’s central bank decision to hold the interest rate at 6.0% underscores their commitment to managing inflation amid mixed economic signals. Global influences, such as U.S. job creation trends and fluctuating commodity prices, play significant roles in shaping local economic policies. The MPC remains vigilant in pursuing its inflation target as economic conditions evolve.
Original Source: www.tradingview.com
