The Central Bank of Paraguay left its benchmark interest rate unchanged at 5.50% at its June 2026 meeting. Policymakers noted that economic activity remains resilient, with the IMAEP expanding 3.4% year-on-year in April and the ECN up 3.0%. Annual headline inflation stood at 2.4%, while core inflation came in at 1.1%, both below the central bank’s 3.5% target.
Externally, officials highlighted stronger-than-expected labor market data in the United States and an acceleration in inflation there, with headline inflation reaching 4.2% in May. The US Federal Reserve kept its policy rate in a range of 3.50%–3.75%, although markets continue to anticipate further tightening. At the same time, Brent crude prices fell below $80 per barrel as geopolitical tensions eased following a provisional US–Iran agreement and the reopening of the Strait of Hormuz. Prices for soybeans, corn, and wheat also declined.
The decision to keep rates on hold indicates that the Central Bank of Paraguay continues to see its current policy stance as neutral, aiming to balance solid economic growth with moderate inflation.