Paraguay Tasa De Interés

The Central Bank of Paraguay decided to keep its policy rate unchanged at 6% during its October 2024 meeting. The committee noted that US employment figures exceeded expectations, while inflation decelerated more slowly than anticipated, leading markets to expect a gradual pace of Federal Reserve interest rate adjustments. International oil prices declined slightly, despite initial upward pressure from geopolitical tensions in the Middle East. Domestically, economic activity grew 1.6% in August, driven by services and manufacturing, while the energy, construction, and livestock sectors contracted. Monthly CPI inflation was 0.2% in September, primarily due to price increases in durable goods and services. Annual inflation eased to 4.1%, with core inflation at 3.6%. The committee reaffirmed its growth projection for 2024 at 4.0%, noting that inflation expectations remain aligned with the 4.0% target, and saw no significant risks to the inflation outlook.