ECB's Kocher Says No Inflation Spillover Yet From Iran Conflict, Warns Risks Remain 
Asian Currencies Stay Rangebound as Middle East Tensions, Weak China GDP Weigh on Sentiment 
Supreme Court Backs Lisa Cook, Defends Federal Reserve Independence Against Trump Firing Attempt 
Gold Price Holds Near Record High as Cooling U.S. Inflation Offsets Fed Caution 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
Asian Stocks Rise as Softer U.S. Inflation Boosts Sentiment Despite Middle East Tensions 
China Home Prices Fall Again in June Despite Slower Pace of Decline 
Central Banks Eye Gold, Reduce Dollar Exposure as AI Adoption Accelerates: OMFIF Survey 
European Stocks Slip as Middle East Tensions and Hormuz Threat Rattle Markets 
Gold Price Holds Near $4,000 as Middle East Tensions and Fed Rate Hike Bets Grow 
Japan Revises Economic Blueprint to Reassure Markets on BOJ Independence 
Dollar Eases as Middle East Conflict, Fed Outlook and Japan Pension Policy Drive FX Markets 
Dollar Holds Steady Ahead of U.S. CPI as Oil Surge, Middle East Tensions Keep Markets on Edge 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
Mary Daly Says AI Uncertainty Clouds Fed Rate Outlook Despite Restrictive Policy 
Paraguay’s central bank has decided to keep its benchmark interest rate unchanged at 5.5% for the second straight month, signaling confidence in the country’s stable inflation outlook despite ongoing global economic uncertainty. The Monetary Policy Committee (MPC) reached a unanimous decision to maintain the policy rate at 5.50% per annum, aligning with expectations from market analysts who anticipate steady borrowing costs through the remainder of the year.
The central bank continues to target an inflation rate of 3.5%, with an acceptable range of plus or minus two percentage points. Recent data suggests inflation remains well under control. In March, the Consumer Price Index (CPI) rose by 0.8% month-on-month, largely driven by higher fuel prices. However, annual inflation stood at just 1.9%, while core inflation—excluding food and energy—came in at 1.8%. Inflation expectations are firmly anchored at the central bank’s 3.5% target over both the next 12 months and the broader monetary policy horizon.
Economic growth indicators also reflect resilience in Paraguay’s economy. The Monthly Economic Activity Indicator showed a year-on-year increase of 3.8% in February, supported by strong performance across key sectors such as agriculture, services, construction, and utilities. Additionally, the Business Figures Estimator reported a 4.8% annual expansion, fueled by rising sales in vehicles, fuels, pharmaceuticals, and food products. The central bank has maintained its GDP growth forecast for 2026 at 4.2%, reinforcing a positive economic outlook.
Despite strong domestic fundamentals, policymakers remain cautious about external risks. The MPC highlighted ongoing geopolitical tensions, particularly in the Middle East, as a source of uncertainty that could impact global price stability. The International Monetary Fund (IMF) recently revised its 2026 global growth forecast downward to 3.1% while increasing its global inflation projection to 4.4%.
Looking ahead, Paraguay’s central bank is expected to closely monitor both domestic economic performance and international developments. The next MPC meeting is scheduled for May 22, 2026, where policymakers will reassess conditions and determine whether adjustments to the interest rate are necessary.
