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. Interest Rate in Paraguay averaged 5.93 percent from 2010 until 2019, 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.
Interest Rate in Paraguay is expected to be 4.25 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 3.75 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.