Paraguay's central bank kept its benchmark interest rate at 5.50% on Friday in a unanimous vote, The Rio Times reports. The rate has been unchanged since February, after two cuts at the start of the year.
Inflation remains well below the bank's 3.5% target, at 1.7% over the year to September, with core inflation at 1.5%. The bank now expects inflation to end 2026 at 3.0%, down from 3.3%.
The economy is growing faster than expected, with activity in August up 6.7% on a year earlier, led by electricity, manufacturing and services, and the bank has lifted its growth forecast for this year from 4.5% to 5%. It named oil prices above US$110 a barrel, linked to Middle East tensions, and higher US interest rates as the main risks to its outlook.
Source: The Rio Times
