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Montevideo, March 3rd 2024 - 22:24 UTC

 

 

Central Bank of Paraguay lowers interest rates

Friday, November 24th 2023 - 09:59 UTC
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According to the BCP, inflationary pressures remain moderate According to the BCP, inflationary pressures remain moderate

The Central Bank of Paraguay (BCP) lowered its benchmark interest rate from 8.50 to 7.25%, for a cumulative reduction of 1.25 basis points so far this year, in response to an encouraging macroeconomic scenario and positive international economic indicators. The decision was made after a meeting of the Monetary Policy Committee (MPC) late Wednesday, it was reported in Asunción.

Factors such as inflation in the United States, which was below October's projections, and lower-than-expected job creation influenced the decision, it was also explained.

At the local level, Paraguay's Monthly Economic Activity Report (Imaep) showed growth of 0.4% year-on-year in September, a slowdown from the previous month due to a one-off decline in cattle slaughter.

The Estimator of Business Figures (ENC), the sales indicator, recorded a 2.5% year-on-year variation, driven by higher sales in supermarkets, clothing, household equipment, fuels, and chemical-pharmaceutical products. Employment also grew by 2.5% in the third quarter, while confidence in the economy remained high.

The consumer price index (CPI) was 0.5%, mainly due to price increases in some food items. The BCP emphasized that inflationary pressures remain moderate according to various price indicators and that the domestic macroeconomic scenario is following the expected path.

The MPC reaffirmed its commitment to price stability and announced that it would continue to closely monitor local and international developments.

Categories: Economy, Paraguay.

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