Banco Central del Paraguay on May 22 maintained its monetary policy interest rate at 5.25%.
Internationally, economies of advanced countries remain robust, the central bank said. Meanwhile, economic growth in Latin America's most important countries, while remaining positive, have recently moderated.
The central bank said that inflation on the domestic front has remained controlled at levels close to its target. Indicators, however, show a downward inflation trend, partly due to the appreciation of the local currency against those of neighboring countries. The central bank also expects "greater dynamism" in Paraguay's economic activity.
The central bank's annual inflation target is 4.0%
Given the current situation, the central bank said that the "most prudent strategy" is to maintain the current monetary policy profile.
