Banco Central del Paraguay on March 21 decided to maintain its monetary policy interest rate at 5.25%.
On the international front, advanced countries have consolidated economic recovery while volatility in the financial markets has been mitigated, the central bank said. Meanwhile, Paraguay's neighboring countries in the region continue to show a positive economic trend.
Domestically, short-term economic indicators remain favorable, the monetary authority said. Inflation data also continues to converge with the central bank's target.
Given the current scenario, the central bank ruled that the most prudent strategy is to maintain the monetary policy status quo.
Internal and external macroeconomic trends will continue to be monitored, the central bank added, noting that it will use its instruments with flexibility in order to achieve its annual inflation target of 4%.