The central bank of Paraguay left its key monetary policy interest rate steady at 4 percent on January 23rd 2020, saying the current policy stance remains appropriate to reach the 4 percent target for the inflation. The central bank noticed that geopolitical tensions between the US and Iran have moderated and that the Phase One deal between China and the US had a positive impact on investors’ risk appetite. Interest Rate in Paraguay averaged 5.84 percent from 2010 until 2020, reaching an all time high of 8.50 percent in August of 2011 and a record low of 3.50 percent in November of 2010. source: Banco Central del Paraguay

Interest Rate in Paraguay is expected to be 3.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Paraguay to stand at 3.50 in 12 months time. In the long-term, the Paraguay Interest Rate is projected to trend around 3.50 percent in 2020, according to our econometric models.

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Paraguay Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
4.00 4.00 8.50 3.50 2010 - 2020 percent Daily



Calendar GMT Actual Previous Consensus TEForecast
2019-10-21 08:00 PM 4% 4% 4%
2019-11-22 08:00 PM 4% 4% 3.75%
2019-12-20 08:00 PM 4% 4% 4%
2020-01-23 07:40 PM 4% 4% 4%
2020-02-24 08:00 PM 4% 4%


News Stream
2019-12-20
Paraguay Holds Interest Rate at 4%
The central bank of Paraguay decided unanimously to leave the benchmark interest rate unchanged at 4 percent on its December 2019 meeting, following unchanged policy in the November meeting. Policymakers underscored that global economic conditions remain weak and mentioned that the annual inflation rate in Paraguay fell to 1.9 percent in November 2019 from 2.4 percent in the previous month and was the lowest inflation rate since January 2017. The Committee said that the decision is appropriate with the convergence of inflation to the target of 4% and added that they will continue to monitor domestic and external macroeconomic variables and take actions if necessary.

2019-11-22
Paraguay Holds Interest Rate at 4%
The central bank of Paraguay decided unanimously to leave the benchmark interest rate unchanged at 4 percent on its November 2019 meeting, following unchanged policy in the October meeting. Policymakers underscored that global economic conditions remain weak, particularly within industrial activity and international trade. The Committee said that the decision is appropriate with the convergence of inflation to the target of 4% and added that they will continue to monitor domestic and external macroeconomic variables and take actions if necessary.

2019-10-21
Paraguay Holds Interest Rate at 4%
The central bank of Paraguay decided unanimously to leave the benchmark interest rate unchanged at 4 percent on its October 2019 meeting, following two consecutive rate cuts bringing borrowing costs at its lowest level since 2010. Policymakers noted that the annual inflation rate fell to 2.6% in September from 2.8% in August due to cost of rent and services, and added that inflationary pressures will not be anticipated in the coming months. The Committee said that the decision is appropriate with the convergence of inflation to the target of 4% and added that they will continue to monitor domestic and external macroeconomic variables and take actions if necessary.

2019-09-23
Paraguay Cuts Interest Rate to 4%
The central bank of Paraguay decided unanimously to cut its benchmark interest rate by 25 bps to 4 percent on its September 23rd 2019 meeting. The move follows a 25bps slash in the previous meeting and leaves the rate at its lowest level since 2010, amid lower inflation and concerns regarding global economic growth. Policymakers noted that the annual inflation rate fell to 2.8% in August from 3.1% in July due to cost of food and added that inflationary pressures will not be anticipated in the coming months. The Committee said that the decision is appropriate with the convergence of inflation to the target of 4% and that they will continue to monitor domestic and external macroeconomic variables and take actions if necessary.

2019-08-21
Paraguay Slashes Interest Rate to 4.25%
The central bank of Paraguay decided unanimously to cut its benchmark interest rate by 25 bps to 4.25 percent on August 21st 2019, mentioning that uncertainty around global economic growth prospects has intensified in recent weeks. Domestically, policymakers said that no relevant inflationary pressures are seen in the next months, and the rate cut is consistent with the convergence of the inflation rate to the target of 4 percent in the forecast horizon. Regarding growth, available indicators point to reduced economic activity.

2019-07-22
Paraguay Cuts Interest Rate By 25 Bps to 4.50%
The central bank of Paraguay cut its benchmark interest rate by 25 bps to 4.50 percent at its July 22nd 2019 meeting. The Committee noted that global economic growth prospects have recently deteriorated, mainly due to trade tensions. Domestically, policymakers underscored that inflation has recently moderated, declining to 2.8 percent in June 2019 from a six-month high of 3.8 percent in the previous month. Policymakers added that the rate cut is consistent with the convergence of the inflation rate to the target of 4 percent in the forecast horizon and said that they will continue to monitor the evolution and prospects of domestic and external macroeconomic variables.


Paraguay Interest Rate
In Paraguay, interest rates decisions are taken by the Central Bank of Paraguay (Banco Central del Paraguay). The official interest rate is the 14-day interest rate (la tasa de 14 días).

Paraguay Money Last Previous Highest Lowest Unit
Interest Rate 4.00 4.00 8.50 3.50 percent [+]
Deposit Interest Rate 3.94 3.76 23.12 1.21 percent [+]
Loans To Private Sector 70813244.00 70326370.00 70813244.00 2400540.00 PYG Million [+]
Money Supply M0 12379775.00 11915609.00 13756571.00 567255.00 Million PYG [+]
Money Supply M1 29066545.00 28708095.00 30155797.00 827172.00 Million PYG [+]
Money Supply M2 49611946.00 49235070.00 49724754.00 1459962.00 Million PYG [+]
Money Supply M3 90211717.00 89853827.00 90211717.00 2613624.00 Million PYG [+]
Foreign Exchange Reserves 6596.90 6464.00 7437.90 256.60 USD Million [+]