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Paraguay central bank holds benchmark rate at 5.25%

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Paraguay central bank holds benchmark rate at 5.25%

The monetary board of Banco Central del Paraguay on Dec. 20 unanimously decided to keep its benchmark interest rate at 5.25%, noting that inflation expectations remain in line with its 4% medium-term target.

The central bank noted that economic expansion in the Latin American country remained moderate, though it highlighted a "weak" regional environment and uncertainty in international financial markets, which has lingered despite a recent agreement between the U.S and China.

However, the central bank also pointed toward a "calmer" economic situation in Argentina and improving conditions in Brazil.