The central bank of Paraguay left the benchmark interest rate unchanged at 4.75 percent at its May 22nd 2019 meeting. The Committee noted that global economic growth prospects have recently deteriorated, mainly by mounting trade tensions. It also mentioned the complex political context in the region. Domestically, policymakers underscored that economic activity showed weakness in the first months of 2019, but that a better second half of the year is expected. They also mentioned that the monetary rate decision is consistent with the convergence of the inflation rate to the target of 4 percent in the forecast horizon and added that they will continue to monitor the evolution and prospects of domestic and external macroeconomic variables. Interest Rate in Paraguay averaged 5.96 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 4.75 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 5.00 in 12 months time. In the long-term, the Paraguay Interest Rate is projected to trend around 6.50 percent in 2020, according to our econometric models.