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Paraguay central bank maintains key interest rate at 5.25%

Banco Central del Paraguay on Dec. 21 decided to maintain its monetary policy interest rate at 5.25%.

Inflation temporarily rose due to increases in the prices of fruits and vegetables, though the bank noted that the trend has started to reverse. On the whole, inflation measures are consistent with the 4% inflation target in the forecast horizon, the central bank said.

Short-term indicators suggest that the economy will perform better, consistent with the bank's growth forecasts.