23.01.202619:05:06UTC+00Paraguay Cuts Interest Rate 5.75%

The Central Bank of Paraguay reduced its policy interest rate to 5.75% during its meeting in January. The committee highlighted several global factors, including the International Monetary Fund's projections that anticipate global growth to reach 3.3% in both 2025 and 2026. In the United States, GDP expanded by an annualized rate of 4.4% in the third quarter of 2025. Despite job gains in December falling short of expectations, unemployment decreased to 4.4%, and inflation remained steady at 2.7%. Markets continue to factor in additional Federal Reserve rate cuts for 2026. On the global stage, oil prices increased amid geopolitical uncertainties, defying expectations of oversupply. Agricultural commodity prices showed variability, with soybeans on the rise, while corn and wheat prices declined. Domestically, the IMAEP saw a year-on-year growth of 4.0% in November, buoyed by performance in sectors such as services, electricity and water, agriculture, and livestock, although manufacturing experienced a slowdown. Inflation continued its downward trend, with the Consumer Price Index (CPI) at -0.3% in December, culminating in an annual inflation rate of 3.1% for 2025. Inflation expectations remain stable at 3.5%. The Central Bank's monetary policy committee reaffirmed its dedication to maintaining price stability.